DeepSeek’s AI Shockwave: Why Nvidia’s Stock Took a Tumble
1. The Monday Meltdown
When the tiny AI startup DeepSeek rattled the market, even the big guys felt the heat. Nvidia, the reigning chip king, saw its shares slump by 17 % on Monday, wiping off a staggering $589 billion from its market value. The ripple hit the S&P 500 hard, down 2.5% – and it’s all because Nvidia’s chips were on trial.
2. The Ripple Effect on Big Names
- SoftBank (Japan) fell 8.3 % – the tech giant’s nerves were rattled.
- ASML (Netherlands) dipped 7 % – they too felt the undercurrent of DeepSeek’s tremors.
- Conversations buzzing: American tech stocks eye a $1 trillion sell‑off if the combo dish doesn’t cool down.
3. Trump’s Takeaway
President Donald Trump called the spike a “wake‑up call” for AI titans. He’s not shy about a little political muscle:
- “Tariffs on foreign‑made chips, pharma and metals?” – that’s the headline.
- Nvidia’s reliance on Taiwanese TSMC chips might expose it to those taxes.
- But the 17 % plunge could be a bit “too extreme,” said Kathleen Brooks, research director at XTB.
4. The UK’s Response
Downing Street’s spokesperson opened up about the UK’s AI ambitions. “We’re aiming to chop down obstacles faster,” they said.
They also reflected on DEepSeek:
- Strong data‑protection laws keep us on guard.
- AI models are proving why the UK must keep pressing forward.
- With the third largest AI market globally, the nation’s AI Opportunities Action Plan is ready to make a splash.
5. Bottom Line
DeepSeek’s growth has sent shockwaves from Wall Street to Westminster. If Nvidia recoups, the market may quiet down – but for now, everyone’s on their toes. Keep your eyes on the action, and you’ll get the best seat in the house.
