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NVIDIA loses about $590B in market value in one day amid reaction to DeepSeek-R1
Nvidia shares fell 17% on January 27, 2025, erasing close to $590B of market value—the largest one-day loss for any US stock. DeepSeek's efficient R1 reasoning model topped Apple's App Store, triggering investor fears that cheap Chinese models would cut demand for Nvidia's GPUs. Nvidia replied that running such models still requires many of its chips.
- Stock fell 17%; lost ~$590B in market value—largest one-day loss in US history for any stock
- Trigger: DeepSeek-R1 topped Apple App Store, sparking concerns about Chinese AI efficiency
- Market feared efficient models would reduce Nvidia GPU demand
- Nvidia shares remain up 480% over prior two years despite drop; market cap fell to ~$2.9T