Nvidia Loses Nearly $600 Billion in Market Cap Amid AI Competition

Nvidia experienced a historic market cap loss of nearly $600 billion on Monday, marking the largest single-day drop for any U.S. company.

The company's stock plummeted 17%, closing at $118.58.

This decline was driven by concerns over increased competition from Chinese AI lab DeepSeek, which recently unveiled a cost-effective, open-source large language model.

The selloff also impacted data center companies reliant on Nvidia chips, with Dell, Oracle, and Super Micro Computer all seeing significant declines.

Despite the market's reaction, analysts believe advancements in AI will continue to drive demand for Nvidia's products.