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Nvidia’s (NVDA) market capitalization fell by a record $589 billion U.S. on Jan. 27 as the company’s share price closed 17% lower.
Nvidia’s stock suffered its biggest one-day loss since the Covid-19 pandemic struck in March 2020 on concerns that Chinese artificial intelligence (AI) start-up DeepSeek has found a way to create advanced AI models using less sophisticated and cheaper microchips.
The nearly $600 billion U.S. in market cap loss pushed Nvidia’s stock below its previous valuation of more than $3 trillion U.S.
The one-day market cap loss is now the biggest in U.S. history.
Nvidia held the previous record for one-day market cap loss after its stock fell 9% last September, wiping out $279 billion U.S. in value.
The sharp selloff in Nvidia stock dragged the entire technology sector lower, with the Nasdaq Composite index losing 612 points, or 3.07%.
Nvidia is now responsible for eight of the top 10 biggest one-day drops in the S&P 500 index, based on market value, according to data from Bloomberg News.
The benchmark S&P 500 index finished trading on Jan. 27 down 1.46%.
DeepSeek’s low-cost approach to developing AI models raised concerns that U.S. companies have poured too much money into developing their own AI applications, most of which are powered by Nvidia processors.
With the latest selloff, Nvidia is now the third most valuable publicly traded company behind Apple (AAPL) and Microsoft (MSFT).
Despite the big one-day decline, Nvidia’s stock is still up 90% over the past 12 months and currently trading at $118.58 U.S. per share.
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