https://www.cnbc.com/2025/01/27/nvidia-sheds-almost-600-billion-in-market-cap-biggest-drop-ever.html Skip Navigation logo logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Climate * Transportation * Industrials * Retail * Wealth * Sports * Life * Small Business Investing * Personal Finance * Fintech * Financial Advisors * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * CNBC Disruptor 50 * Tech Guide Politics * White House * Policy * Defense * Congress * Equity and Opportunity Video * Latest Video * Full Episodes * Livestream * Live Audio * Live TV Schedule * CNBC Podcasts * CEO Interviews * CNBC Documentaries * Digital Originals Watchlist Investing Club * Trust Portfolio * Analysis * Trade Alerts * Meeting Videos * Homestretch * Jim's Columns * Education * Subscribe * Sign In Join IC PRO * Pro News * My PortfolioNEW! * Livestream * Full Episodes * Stock Screener * Market Forecast * Options Investing * Chart Investing * Subscribe * Sign In Join Pro Livestream Menu * Make It * select + ALL SELECT + Credit Cards + Loans + Banking + Mortgages + Insurance + Credit Monitoring + Personal Finance + Small Business + Taxes + Help for Low Credit Scores + Investing + SELECT + All Credit Cards + Find the Credit Card for You + Best Credit Cards + Best Rewards Credit Cards + Best Travel Credit Cards + Best 0% APR Credit Cards + Best Balance Transfer Credit Cards + Best Cash Back Credit Cards + Best Credit Card Welcome Bonuses + Best Credit Cards to Build Credit + SELECT + All Loans + Find the Best Personal Loan for You + Best Personal Loans + Best Debt Consolidation Loans + Best Loans to Refinance Credit Card Debt + Best Loans with Fast Funding + Best Small Personal Loans + Best Large Personal Loans + Best Personal Loans to Apply Online + Best Student Loan Refinance + SELECT + All Banking + Find the Savings Account for You + Best High Yield Savings Accounts + Best Big Bank Savings Accounts + Best Big Bank Checking Accounts + Best No Fee Checking Accounts + No Overdraft Fee Checking Accounts + Best Checking Account Bonuses + Best Money Market Accounts + Best CDs + Best Credit Unions + SELECT + All Mortgages + Best Mortgages + Best Mortgages for Small Down Payment + Best Mortgages for No Down Payment + Best Mortgages with No Origination Fee + Best Mortgages for Average Credit Score + Adjustable Rate Mortgages + Affording a Mortgage + SELECT + All Insurance + Best Life Insurance + Best Homeowners Insurance + Best Renters Insurance + Best Car Insurance + Travel Insurance + SELECT + All Credit Monitoring + Best Credit Monitoring Services + Best Identity Theft Protection + How to Boost Your Credit Score + Credit Repair Services + SELECT + All Personal Finance + Best Budgeting Apps + Best Expense Tracker Apps + Best Money Transfer Apps + Best Resale Apps and Sites + Buy Now Pay Later (BNPL) Apps + Best Debt Relief + SELECT + All Small Business + Best Small Business Savings Accounts + Best Small Business Checking Accounts + Best Credit Cards for Small Business + Best Small Business Loans + Best Tax Software for Small Business + SELECT + All Taxes + Filing For Free + Best Tax Software + Best Tax Software for Small Businesses + Tax Refunds + Tax Brackets + Tax Tips + Tax By State + Tax Payment Plans + SELECT + All Help for Low Credit Scores + Best Credit Cards for Bad Credit + Best Personal Loans for Bad Credit + Best Debt Consolidation Loans for Bad Credit + Personal Loans if You Don't Have Credit + Best Credit Cards for Building Credit + Personal Loans for 580 Credit Score or Lower + Personal Loans for 670 Credit Score or Lower + Best Mortgages for Bad Credit + Best Hardship Loans + How to Boost Your Credit Score + SELECT + All Investing + Best IRA Accounts + Best Roth IRA Accounts + Best Investing Apps + Best Free Stock Trading Platforms + Best Robo-Advisors + Index Funds + Mutual Funds + ETFs + Bonds * USA * INTL * Livestream Search quotes, news & videos * Livestream Watchlist SIGN IN logo Markets Business Investing Tech Politics Video Watchlist Investing Club Join IC PRO Join Pro Livestream Menu background of header foreground of header * AI at Work * AI Age * AI Insights AI Effect Nvidia sheds almost $600 billion in market cap, biggest one-day loss in U.S. history Published Mon, Jan 27 20254:08 PM ESTUpdated 32 Min Ago thumbnail Samantha Subin@samantha_subin WATCH LIVE Key Points * Nvidia shares plunged 17% on Monday, resulting in a market cap loss of close to $600 billion, the biggest drop ever for a U.S. company. * The sell-off, which hit much of the U.S. tech sector, was sparked by concerns about increased competition from Chinese AI lab DeepSeek. * Data center companies that rely on Nvidia chips also plummeted, with Dell, Oracle and Super Micro Computer all falling by at least 8.7%. In this article * NVDA Follow your favorite stocksCREATE FREE ACCOUNT Nvidia CEO Jensen Huang holds a Blackwell GeForce RTX 50 Series GPU (L) and a RTX 5000 laptop as he delivers a keynote address at the Consumer Electronics Show (CES) in Las Vegas, Nevada on January 6, 2025. Patrick T. Fallon | Afp | Getty Images Nvidia lost close to $600 billion in market cap on Monday, the biggest drop for any company on a single day in U.S. history. The chipmaker's stock price plummeted 17% to close at $118.58. It was Nvidia's worst day on the market since March 16, 2020, which was early in the Covid pandemic. After Nvidia surpassed Apple last week to become the most valuable publicly traded company, the stock's drop Monday led a 3.1% slide in the tech-heavy Nasdaq. The sell-off was sparked by concerns that Chinese artificial intelligence lab DeepSeek is presenting increased competition in the global AI battle. In late December, DeepSeek unveiled a free, open-source large language model that it said took only two months and less than $6 million to build, using reduced-capability chips from Nvidia called H800s. Nvidia's graphics processing units, or GPUs, dominate the market for AI data center chips in the U.S., with tech giants such as Alphabet, Meta and Amazon spending billions of dollars on the processors to train and run their AI models. Analysts at Cantor wrote in a report Monday that the release of DeepSeek's latest technology has caused "great angst as to the impact for compute demand, and therefore, fears of peak spending on GPUs." Read more DeepSeek coverage * China's DeepSeek AI dethrones ChatGPT on App Store * DeepSeek hit with large-scale cyberattack, says it's limiting registrations * How China's new AI model DeepSeek is threatening U.S. dominance * Nvidia hits new low for session on threat from DeepSeek AI model * Buzz around Chinese AI model DeepSeek sparks massive Nasdaq sell-off * Pro: The key chart levels to watch on Nvidia and other tech stocks amid DeepSeek rout The analysts said they "think this view is farthest from the truth" and that advancements in AI will most likely lead to "the AI industry wanting more compute, not less." They recommend buying Nvidia shares. But after Nvidia's huge run-up -- the stock soared 239% in 2023 and 171% in 2024 -- the market is on edge about any possible pullback in spending. Broadcom, the other big U.S. chipmaker to see giant valuation gains from AI, fell 17% on Monday, pulling its market cap down by $200 billion. Data center companies reliant on Nvidia's GPUs for their hardware sales saw big sell-offs as well. Dell, Hewlett Packard Enterprise and Super Micro Computer dropped at least 5.8%. Oracle, a part of President Donald Trump's latest AI initiative, fell 14%. For Nvidia, the loss was more than double the $279 billion drop the company saw in September, which was the biggest one-day market value loss in history at the time, unseating Meta's $232 billion loss in 2022. Before that, the steepest drop was $182 billion by Apple in 2020. Nvidia's decline is more than double the market cap of Coca-Cola and Chevron and exceeds the market value of both Oracle and Netflix. CEO Jensen Huang's net worth also took a massive hit, declining roughly $21 billion, according to Forbes' real-time billionaires list . The move demoted Huang to 17th on the richest-person list. The sudden excitement around DeepSeek over the weekend pushed its app past OpenAI's ChatGPT as the most-downloaded free app in the U.S. on Apple's app store. The model's development comes despite a slew of recent curbs on U.S. chip exports to China. Venture capitalist David Sacks, who was tapped by Trump to be the White House's AI and crypto czar, wrote on X that DeepSeek's model "shows that the AI race will be very competitive" and that Trump was right to rescind President Joe Biden's executive order last week on AI safety. "I'm confident in the U.S. but we can't be complacent," Sacks wrote. Nvidia is now the third most-valuable public company, behind Apple and Microsoft. WATCH: CNBC's full interview with Bernstein's Stacy Rasgon Watch CNBC's full interview with Bernstein's Stacy Rasgon, Trivariate's Adam Parker and Payne Capital's Courtney Garcia watch now VIDEO22:0522:05 Watch CNBC's full interview with Bernstein's Stacy Rasgon, Trivariate's Adam Parker and Payne Capital's Courtney Garcia Closing Bell More In AI Effect Early Facebook investor Jim Breyer says Zuckerberg has been 'revitalized' by Meta's AI push Early Facebook investor Jim Breyer says Zuckerberg has been 'revitalized' by Meta's AI push Annie Palmer Trump had phone call with OpenAI's Sam Altman last week about AI infrastructure Trump had phone call with OpenAI's Sam Altman last week about AI infrastructure Kate Rooney Perplexity AI makes a bid to merge with TikTok U.S. Perplexity AI makes a bid to merge with TikTok U.S. Hayden Field Read More CNBC logo * * * * * * * * Subscribe to CNBC PRO * Subscribe to Investing Club * Licensing & Reprints * CNBC Councils * Select Personal Finance * CNBC on Peacock * Join the CNBC Panel * Supply Chain Values * Select Shopping * Closed Captioning * Digital Products * News Releases * Internships * Corrections * About CNBC * Ad Choices * Site Map * Podcasts * Careers * Help * Contact * News Tips Got a confidential news tip? We want to hear from you. Get In Touch * CNBC Newsletters Sign up for free newsletters and get more CNBC delivered to your inbox Sign Up Now Get this delivered to your inbox, and more info about our products and services. * Advertise With Us Please Contact Us * Privacy Policy * California Consumer Privacy Act (CCPA) Opt-Out Icon * CA Notice * Terms of Service (c) 2025 CNBC LLC. All Rights Reserved. A Division of NBCUniversal Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Market Data Terms of Use and Disclaimers Data also provided byReuters logo