Nvidia stock plummeted on Monday as news that a Chinese company had built an artificial-intelligence model that was competitive with Western rivals for a fraction of the cost provoked a panic in the chips sector.

ET, the Dow Jones Industrial Average fell 0.28 per cent, the S&P 500 lost 1.77 per cent, the Nasdaq Composite lost 3.04 per cent

Shares of Nvidia (NASDAQ:NVDA) plunged 16.86% on Monday, wiping out $589 billion in market value, following the debut of DeepSeeks new AI models. The sell-off marked the largest single-day market value loss in history,

Nvidia Corp.’s plunge, fueled by investor concern about Chinese artificial-intelligence startup DeepSeek, erased a record amount of stock-market value from the world’s largest company.

Shares of semiconductor makers were dropping early Monday as a Chinese AI model triggered questions over their lofty valuations.

Reports that Chinese AI lab DeepSeek has created an AI model that rivals U.S. models sent shockwaves through AI chip stocks on Monday.

According to a paper authored by the lab, the DeepSeek-R1 model outperforms cutting-edge models such as OpenAI’s o1 and Meta’s Llama AI models across multiple benchmarks.

Today could be a very red day in the stock market, and DeepSeek might be to blame. China's AI startup DeepSeek has captured the attention of enthusiasts ever since its launched its latest reasoning AI model,