Nvidia Loses ₹51,00,000 Crore In A Day After China's DeepSeek AI Leaves Chipmaker Shares With Deep Cuts

Nvidia, the maker of the famous Blackwell chips that have been at the centre of the Artificial Intelligence revolution, has been hit by a category 4 equivalent technological hurricane.

The DeepSeek Storm

The company shares and its market capitalisation suffered a major blow at the beginning of the new trading week on Monday, January 27.

This came to pass after the Chinese AI project DeepSeek exhibited exceptional proficiency, similar to its American rivals, including OpenAI ChatGPT.

All this using far fewer advanced semiconductor chips and training data, which would translate to lesser cost.

DeepSeek is a Hangzhou-headquartered company that was only founded in 2023.

This apparent cost-effective nature of the AI technology used by DeepSeek has spooked the markets that rely on American companies for their growth.

The DeepSeek mobile application topped the list of AI chatbots on Apple iPhone's App Store.

DeepSeek Wrecks Nvidia

Nvidia was the most visible, and arguably the worst casualty of the recent development.

As per reports, the company witnessed its worst day, with a market capitalisation of USD 593 billion or about Rs 51,00,000 Crore or 51 lakh crore of its market capitalisation wiped out in just a day's trade.

Needless to say, the company shares on Wall Street also had one of its worst days with a catastrophic decline of 16.86 per cent or USD 24.04 in just one trading session.

It also may be noted that Nvidia took the tech-heavy index of Nasdaq with it. The index closed 3.07 per cent or 612.47 points, humbled at 19,341.83.

Jensen Huang Loses USD 20 billion of Net Worth

This took the overall value of the company shares to USD 118.58 per piece, compared to its previous closing of USD 142.62.

Not just that, as per CompaniesMarketcap.com, the company was pushed from the largest company in terms of market cap to the third largest with a mcap of USD 2.900 trillion.

This is the first time since September 2024 or about 5 months, that the company's numbers have fallen below the coveted USD 3 trillion mark.

The company founder's own fortunes suffered as Jensen Huang lost about USD 20 billion of its net worth, taking the overall figure to USD 108 billion.

Nvidia, amidst crumbling prices, came out to defend itself, and said that apps like DeepSeek show that contrary to expectation, there would be greater demand for Nvidia chips.