For two years, markets' belief that the rise of artificial intelligence would usher in a new era of productivity growth has fueled trillions of dollars in stock-market gains.
Nvidia, the maker of the computer chips at the heart of the AI boom, has been in the vanguard of this advance. Wall Street has perceived the company to have an almost unbreachable defense against competition with its offerings of high-tech chips. The company's rapid growth and windfall profits have helped push other technology firms and the Nasdaq Composite Index to record after record, with giddy investors expecting more of the same down the road.
On Monday, the mood turned sour. DeepSeek, a dark-horse power in artificial intelligence, emerged from China. That rattled big tech stocks, led by a plunge of almost $600 billion in Nvidia, which only last week was the world's most valuable company. Nvidia's fall marked the largest one-day loss in market value for any public company.
This story is from the January 28, 2025 edition of The Wall Street Journal.
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This story is from the January 28, 2025 edition of The Wall Street Journal.
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