Nvidia Loses Nearly $600 Billion in Biggest Single-Day Market Loss in History

Demand for Nvidia chips, used to power AI models from various companies, had propelled the company to one of the largest capitalizations in the world.

Nvidia founder and CEO Jensen Huang speaks during a Nvidia news conference ahead of the CES tech show , in Las Vegas on Jan. 6, 2025. Abbie Parr/AP Photo

Tech giant Nvidia saw stock prices crash on Jan. 27 following investor concerns that low-cost Chinese artificial intelligence (AI) models could negatively affect sales of the company’s chips.

Nvidia shares fell from Jan. 24’s closing price of $142.62 to $118.51 by the end of Jan. 27, a decline of nearly 17 percent. The collapse in share value wiped out $593.7 billion in the company’s market capitalization. The tech-focused NASDAQ index declined by more than 3 percent on Jan. 27. Nvidia’s market crash followed investor concerns about the effect of the open-source AI model DeepSeek, which was developed by a Chinese startup.