Jan 28, 2025

DeepSeek Sparks AI Stock Selloff; Nvidia Posts Record Market-Cap Loss

In a dramatic turn for the AI-driven stock market, DeepSeek, a disruptive AI-powered financial analytics platform, issued a bearish outlook on the AI sector, sparking a sharp selloff. Nvidia, a leading player in AI and semiconductor technology, bore the brunt of the fallout, posting a record-breaking market-cap loss of $200 billion in a single trading session.


DeepSeek's analysis cited concerns about overvaluation and slowing demand for AI hardware, which rattled investor confidence. Nvidia's leadership in AI chips, while unparalleled, has made it particularly vulnerable to such shifts in market sentiment.

This selloff highlights the fragility of AI-related stocks in the face of critical analysis or shifting macroeconomic conditions. However, experts suggest the long-term outlook for AI remains strong, driven by continued innovation and adoption across industries.

As the dust settles, investors are left questioning whether this is a short-term correction or a signal to reassess AI stock valuations. For now, all eyes remain on Nvidia and the broader AI sector for signs of recovery.

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