Nvidia’s stock has experienced a substantial decline, falling over 11% in pre-market trading on Monday, January 27, 2025. But why did it suddenly drop? Let us give you a brief of the reason.
This downturn is primarily due to the emergence of DeepSeek, a Chinese AI startup that introduced a new AI model rivaling those of U.S. companies like OpenAI and Meta but operating fewer Nvidia chips.
This evolution has further presented apprehensions about the future market for Nvidia’s hardware in AI applications.
This entire episode has caused Nvidia’s stock price to drop to $142.62, marking a decline of $4.615 (approximately 3.14%) from the previous close. This drop has contributed to a more comprehensive sell-off in the tech sector, with companies like ASML, Microsoft, and Meta also encountering significant share price plunges.
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