DeepSeek's AI Revolution Sparks Global Tech Stock Selloff

Global investors offloaded tech stocks after the launch of DeepSeek, a low-cost Chinese AI model, causing Nvidia to lose a record $593 billion in market value. DeepSeek has surpassed ChatGPT in downloads, leading to a significant drop in the tech-heavy Nasdaq and broader market instability.

On Monday, worldwide investors initiated a massive selloff in technology stocks, primarily triggered by fears that a new low-cost Chinese AI model from startup DeepSeek could challenge established AI leaders like Nvidia.

The move resulted in a staggering $593 billion loss in Nvidia's market value, marking the largest single-day decline in Wall Street history. The tech-heavy Nasdaq dropped by 3.1%, exacerbated by Nvidia's near 17% plunge.

The turmoil was compounded as semiconductor manufacturers including Broadcom, which fell 17.4%, and Marvell Technology, which declined 19.1%, bore heavy losses. The upheaval, originating in Asia, spread through Europe, impacting firms like ASML. Experts suggest that this disruption could reshape AI-related investment and drive changes in equity risk management.

(With inputs from agencies.)