Nvidia, once riding high on the AI wave, faced its steepest decline on January 27, 2025, wiping out $595 billion in market value—equivalent to the combined worth of PepsiCo, McDonald’s, Starbucks, and Target.
The company, which was primarily known for gaming and crypto chips a few years ago, became a tech giant as demand for its AI processors skyrocketed. In 2023, Nvidia’s stock tripled, and in 2024, it more than doubled, making CEO Jensen Huang the “Godfather of AI.” Nvidia briefly surpassed Apple as Wall Street’s most valuable company.
However, Monday’s crash was triggered by the Chinese startup DeepSeek, which unveiled an AI model that rivaled ChatGPT but required significantly less computing power. This raised concerns about reduced dependency on Nvidia’s chips, causing panic across AI-related stocks.
Nvidia’s rise began with gaming, but its GPUs revolutionized AI computing, fueling advancements in self-driving cars, chatbots, and generative AI. Its revenue skyrocketed from $6.05 billion in early 2023 to $35.08 billion by late 2024. The company contributed over a fifth of the S&P 500’s total gains last year, overshadowing Apple.
Despite Monday’s 17% drop, analysts believe Nvidia could bounce back. History has shown that tech giants like Microsoft, Apple, and Amazon have all weathered similar storms and emerged stronger.
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