What happened with American tech stocks yesterday?published at 13:35 Greenwich Mean Time
Nick Edser
Business reporter
Monday proved to be a traumatic day for several tech stocks after the emergence of DeepSeek’s AI model sent a shudder across markets.
The most notable victim was US chip giant Nvidia. Its shares fell 17%, cutting its stock market value by about $593bn (£433bn) – the biggest single-day loss in US market history.
Other tech stocks also took a bruising.
- Microsoft fell 2%
- Google-owner Alphabet lost 4%
- and Dell Technologies – which makes AI servers – sank 8.7%
And it wasn’t only tech stocks that were affected. Power companies – which were expected to benefit from the demand for power to drive AI data centres – saw big losses, with Vistra Corp plunging 28%.
The falls had a knock-on effect in Asian markets on Tuesday. Shares in Japanese AI-related firms – including Advantest, Softbank and Tokyo Electron – all fell sharply.
However, there are signs that a partial rebound could be coming, with Nvidia shares expected to see a small rise when trading restarts in the US at 09:30 EST (14:30 GMT).
Nvidia shares have soared in the past year as excitement around the potential for AI has built, so while the 17% fall on Monday was dramatic, AJ Bell investment director Russ Mould notes that this only pulls the share price back to levels seen in October last year.