JAKARTA – The market capitalisation of Nvidia Corporation (NASDAQ: NVDA), a US-based chip manufacturer, plummeted by nearly USD 600 billion during Monday’s (27/1) trading session.

NVDA’s market capitalisation shrank immediately after DeepSeek, a Chinese startup, launched an AI assistant platform that competes with ChatGPT, developed by Microsoft and OpenAI. DeepSeek claims its service requires significantly fewer resources than ChatGPT.

Several parties have noted that the launch of DeepSeek has dealt a major blow to US technology stocks. NVDA’s shares tumbled 17% in a single day on Monday. Shares of Broadcom Inc. (AVGO) also declined by 17.4%, Microsoft (MSFT) by 2.1%, and Alphabet (GOOGL) by 4.2%.

Brian Jacobsen, Chief Economist at Annex Wealth Management, suggested that the emergence of DeepSeek could disrupt the AI technology narrative that has developed over the past two years.

"The arrival of DeepSeek could mean a reduction in demand for chips, as building AI technology may no longer require massive computational power and large-scale data centres," Jacobsen told Reuters.

Notably, the decline in NVDA and other tech stocks was not prolonged. By Tuesday’s session, NVDA shares had rebounded by 8%. The S&P 500 also showed a 1% gain, while the Nasdaq Composite was up by 2%. (KR/ZH)