AI Shockwave: Nvidia's Record Plunge and Market Turbulence

Nvidia experienced a record one-day loss in market value due to competition from a Chinese AI model. This triggered a massive selloff across tech stocks, with over $1 trillion lost. Skepticism exists about the new AI model's cost effectiveness, but it signals fierce global competition.

In a dramatic financial downturn, Nvidia witnessed a historic one-day loss in market value, largely due to competition from an emerging low-cost Chinese AI model released by startup DeepSeek. The significant loss raises concerns about the dominance of U.S. tech companies in the competitive AI industry.

Despite skepticism over DeepSeek's claims, industry leaders like OpenAI's Sam Altman see it as a legitimate challenge, while political figures like President Donald Trump refer to it as a critical alert for U.S. industries. This disruption has investors questioning their strategies amidst the massive selloff affecting tech stocks globally.

With tech shares plummeting worldwide, investors are navigating an uncertain market. The volatility signals a potential reevaluation of AI investments, with retail investors seizing opportunities to buy undervalued stocks. As industry giants like Apple and Microsoft prepare to report earnings, the scrutiny on capital expenditure will intensify.

(With inputs from agencies.)