Posted byadminJanuary 29, 2025No CommentsEditNvidia Reacts to 17% Drop in Stock Price
On January 27, Nvidia’s stock fell by 17%. This was the company’s worst day since the COVID-19 pandemic started in March 2020. The drop in Nvidia’s share price caused a loss of about $600 billion in market value.
This loss set a new record for the biggest single-day drop in market value. The news about Nvidia’s stock has made waves in the market. It shows how tough the competition is in the AI field, especially with China’s DeepSeek AI lab.
Nvidia wasn’t the only one hit hard by the market. ASML’s shares fell by 6%, and Broadcom’s stock dropped by 17% too. The whole market felt the shock, with the Nasdaq index falling by 3% and the S&P 500 index dropping by 1.5%.
But the Dow Jones Industrial Average didn’t fall as much. It actually went up by 0.7%.

Key Takeaways
- Nvidia experienced a 17% drop in its stock price, resulting in a $600 billion market value loss.
- This event marks the largest single-day market value loss in stock market history for a company.
- ASML and Broadcom also faced significant downturns, with a 6% and 17% decrease in share prices respectively.
- The Nasdaq index dropped by 3%, while the S&P 500 index fell by 1.5%.
- The Dow Jones Industrial Average showed resilience, rising by 0.7%.
Overview of Nvidia’s Stock Price Drop
Nvidia’s stock price fell by 17%, ending at $118.58. This was Nvidia’s worst day since March 16, 2020. It also led to a huge loss in market value.
The Nasdaq Composite index dropped over 3% after Nvidia’s fall. The S&P 500 index fell about 1.5% on the same day. This shows how Nvidia’s drop affected the tech sector.
Details of the 17% Plummet
Nvidia lost almost $600 billion in market value in one day. This was the biggest drop for any U.S. company. It was more than the previous record loss in September.
Nvidia’s stock had gone up by 239% in 2023 and 171% in 2024 before falling.
Market Reactions
The drop in Nvidia’s stock affected other tech companies and indices. Data center companies that use Nvidia’s GPUs saw big drops. Oracle’s stock fell by 14%.
Other big semiconductor firms like Broadcom and Micron Technology also fell by more than 15%. The tech market indices, like the Nasdaq and S&P 500, also fell.
Comparisons with Other Tech Companies
Company | Market Cap Drop | Stock Price Impact |
---|---|---|
Nvidia | $589 billion | -17% |
Broadcom | $200 billion | -17% |
Meta | $232 billion (2022) | N/A |
Apple | $182 billion (2020) | N/A |
Nvidia’s drop is the biggest in tech history. Meta’s biggest loss was $232 billion in 2022. Apple’s biggest drop was $182 billion in 2020. Nvidia’s loss is even bigger than the combined value of Oracle and Netflix.
Immediate Financial Response by Nvidia
Nvidia’s stock price dropped by 17%, losing about $600 billion in value. The company quickly acted to address this issue. They made announcements to calm investors and show they are in control.
Statement from Nvidia
Nvidia talked about following export rules, especially for DeepSeek. This AI lab is a part of Nvidia’s plans, even with market ups and downs. They said they are confident in their ability to grow, even with current challenges.
Investor Communication
Nvidia’s leaders spoke directly to investors. They talked about the growth in AI and how it will help Nvidia grow. They pointed out the stock’s 90% increase in a year as proof of their strength.
Nvidia Responds to Its Stock Price Plummeting 17%
Nvidia said they are all in on making artificial intelligence (AI) better. They talked about how AI is key to their success. They use special chips and GPUs to make AI work better.
DeepSeek, a new AI lab, is a big part of Nvidia’s plan. It uses Nvidia’s tech to make new AI models. Nvidia sees this as a big win for AI and a chance to make more money.
Details of the 17% Plummet
Nvidia lost almost $600 billion in market value in one day. This was the biggest drop for any U.S. company. It was more than the previous record loss in September.
Nvidia’s stock had gone up by 239% in 2023 and 171% in 2024 before falling.
Market Reactions
The drop in Nvidia’s stock affected other tech companies and indices. Data center companies that use Nvidia’s GPUs saw big drops. Oracle’s stock fell by 14%.
Other big semiconductor firms like Broadcom and Micron Technology also fell by more than 15%. The tech market indices, like the Nasdaq and S&P 500, also fell.
Comparisons with Other Tech Companies
Company | Market Cap Drop | Stock Price Impact |
---|---|---|
Nvidia | $589 billion | -17% |
Broadcom | $200 billion | -17% |
Meta | $232 billion (2022) | N/A |
Apple | $182 billion (2020) | N/A |
Nvidia’s drop is the biggest in tech history. Meta’s biggest loss was $232 billion in 2022. Apple’s biggest drop was $182 billion in 2020. Nvidia’s loss is even bigger than the combined value of Oracle and Netflix.
Immediate Financial Response by Nvidia
Nvidia’s stock price dropped by 17%, losing about $600 billion in value. The company quickly acted to address this issue. They made announcements to calm investors and show they are in control.
Statement from Nvidia
Nvidia talked about following export rules, especially for DeepSeek. This AI lab is a part of Nvidia’s plans, even with market ups and downs. They said they are confident in their ability to grow, even with current challenges.
Investor Communication
Nvidia’s leaders spoke directly to investors. They talked about the growth in AI and how it will help Nvidia grow. They pointed out the stock’s 90% increase in a year as proof of their strength.
Nvidia Responds to Its Stock Price Plummeting 17%
Nvidia said they are all in on making artificial intelligence (AI) better. They talked about how AI is key to their success. They use special chips and GPUs to make AI work better.
DeepSeek, a new AI lab, is a big part of Nvidia’s plan. It uses Nvidia’s tech to make new AI models. Nvidia sees this as a big win for AI and a chance to make more money.

Nvidia’s GPUs are crucial for DeepSeek’s success. They said their tech is strong, even when the stock goes down. They believe AI will change the world, thanks to DeepSeek.
The market had a big drop, and Nvidia’s stock fell 17%. This cost them $589 billion. Other big tech companies like Microsoft and Alphabet also lost money. The whole market felt the shock.
Company | Stock Decline | Market Value Lost |
---|---|---|
Nvidia | 17% | $589 Billion |
Microsoft | 4% | Not specified |
Alphabet | 3% | Not specified |
The chip industry also saw big drops. The Philadelphia Semiconductor Index fell 9.15%. This shows worries in the chip world.
Nvidia quickly spoke up to calm investors. They showed they are still focused on AI. They are working hard to keep moving forward.
Role of Chinese AI Lab DeepSeek
DeepSeek is a new name in AI that’s making waves. It was started in 2023 in Hangzhou, China. This company is quickly becoming a big player in AI worldwide.
DeepSeek’s work has made a big splash in the market. It has affected Nvidia’s stock and the global market. This has changed how investors feel and how the industry works.
DeepSeek’s New AI Model
DeepSeek has made a big leap with its new AI model, the R1. It’s cheap and smart, beating others in tests. The R1 was made in just two months for $5.6 million.
This model is better than OpenAI’s o1-mini in many ways. It’s also more popular to download than OpenAI’s models.
People are really interested in DeepSeek’s work. The DeepSeek app is the top free app in the US and UK. This shows DeepSeek’s big impact in AI.
It’s making people talk about investing in DeepSeek.
Impact on Nvidia and the Global Market
DeepSeek’s success has hurt Nvidia’s stock. It fell by 17%, losing nearly $600 billion in value. This was Nvidia’s worst day since March 16, 2020.
This big drop has affected the whole tech world. Tech-heavy indexes like Nasdaq fell by 3.1%. Big tech companies like Alphabet and Amazon also saw their stocks drop.
Nvidia’s stock fall shows how new AI tech can shake things up. It’s a big deal for the global market.
The table below shows how different tech companies were affected:
Company | Percentage Stock Decline | Market Capitalization Loss |
---|---|---|
Nvidia | 17% | $600 billion |
Broadcom | 17% | $200 billion |
Oracle | 14% | — |
Dell | 5.8% | — |
As DeepSeek keeps pushing AI forward, we’ll see more changes. This will affect Nvidia and the global market. Investors and industry folks need to keep a close eye on this.
Impact on the Semiconductor Industry
Nvidia’s stock price dropped by 17%. This has shaken the semiconductor industry. It has caused big changes in the U.S. and worldwide.
Effects on U.S. Chipmakers
Nvidia’s fall didn’t just affect them. It also hit U.S. chipmakers like Micron and Advanced Micro Devices. Micron’s stock fell by 11.71%, and AMD’s did too.
The Philadelphia Stock Exchange Semiconductor Index dropped by 9.15%. This shows how U.S. chipmakers were affected.

This caused big swings in the stock market. The Nasdaq 100 index fell by 3%. The S&P 500 index dropped by 1.5%.
Nvidia lost $589 billion in market value. Other tech giants also saw their values drop.
Global Market Impact
Nvidia’s stock fall wasn’t just a U.S. issue. It affected markets worldwide. In the Netherlands, ASML Holding’s stock fell by 7%.
In Japan, big chipmakers saw their stocks drop too. This shows how much the world relies on Nvidia’s tech.
In Europe, markets like the CAC 40 in Paris and DAX 40 in Frankfurt fell. This shows how connected the semiconductor industry is. Any big change, like Nvidia’s, can affect everyone.
Analyst Opinions on Nvidia’s Future
After recent market ups and downs, many analysts have shared their views on Nvidia’s future. Their opinions are key to understanding the company’s current situation and future chances. A big topic is if U.S. tech giants, like Nvidia, can keep investing so much in AI.
Yet, some experts believe Nvidia will grow a lot because of AI and computing needs. They say Nvidia’s smart moves in AI and new products will help it grow, even with recent problems.
Analysts from Morgan Stanley predict that Nvidia’s robust pipeline of new AI technologies will help the company achieve substantial market gains over the next five years.

Investment advisors also see a bright future for Nvidia. They point out the company’s ability to bounce back from market drops. They think Nvidia will use its AI leadership to win big in new areas like self-driving cars and AI in healthcare.
To give a clear picture, here’s a table showing recent market changes in tech:
Company | Share Price Drop | Market Value Loss |
---|---|---|
Nvidia | 17% | $589 billion |
Microsoft | 4% | N/A |
Alphabet | 3% | N/A |
Broadcom | 17% | $200 billion |
Oracle | 14% | N/A |
Broadcom | 17% | $200 billion |
Nvidia’s future looks good, despite past losses. Its shares went up a lot in 2023 and 2024. Everyone will watch Nvidia’s AI moves closely to see if it will keep doing well in a tough market.
Nvidia’s Market Performance Before and After the Drop
In looking at Nvidia’s historical market performance, we see a strong rise. Nvidia was ahead of others in value, thanks to AI and GPU success. But a 16.9% drop has raised questions about its future market projections.
Historical Performance
Nvidia’s stock price soared before the drop. It was driven by high demand for GPUs and AI progress. This put Nvidia ahead of many in the chip sector.
But then, Nvidia’s value fell by $589 billion in one day. This was the biggest loss in U.S. stock history. It also led to selling in other big companies, making the S&P 500 and Nasdaq fall.
Future Projections
Despite the drop, Nvidia’s future looks hopeful. Its lead in AI and GPUs is strong. Experts think more spending on chips and growing demand will help it recover.
Big tech companies like Meta are also investing more in AI. This means Nvidia’s GPUs will be even more important. The Stargate AI project shows how vital these technologies are for AI today and tomorrow.
Nvidia’s strong base in AI and GPUs gives it confidence for the future. As tech keeps changing, Nvidia’s ability to adapt will help its market performance.
Company | Stock Decline (%) | Market Impact |
---|---|---|
Nvidia | 16.9% | Largest single-day loss in company value |
Micron Technology | 11% | Significant decline, echoing Nvidia’s drop |
Broadcom | 17% | Notable decrease, reflecting market turbulence |
AMD | 6% | Moderate impact |
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Conclusion
Nvidia’s stock price fell by 17%, showing how unstable the tech world can be. This drop caused a huge loss of $600 billion. It’s the biggest loss for any U.S. company ever.
Nvidia’s stock closed at $118.58. Other big companies like Dell and Oracle also saw their stocks drop by at least 8.7%. This shows how the whole tech world was affected.
DeepSeek, a Chinese AI lab, made a big impact. They used Nvidia’s H800 chips to make a strong AI model for under $6 million in two months. Now, Nvidia is under pressure from new competitors.
CEO Jensen Huang lost about $21 billion. He needs to lead Nvidia well to keep up with the competition and market changes.
Nvidia has shown it can bounce back before. Its market value went up 239% in 2023 and 171% in 2024 before this drop. But, some experts are unsure about Nvidia’s future.
Some say buying Nvidia shares now is a good idea. Others are worried about its long-term success. As investors watch, Nvidia’s stock news will be very important.
FAQ
What prompted the 17% drop in Nvidia’s stock price?
Nvidia’s stock price fell by 17% on January 27. This was due to worries about more competition in AI, especially from DeepSeek in China.
How did the market react to Nvidia’s stock price drop?
The stock drop affected many areas. It made other AI trades and the Nasdaq fall by 3.1%.
How does Nvidia’s recent pricing performance compare to other tech companies?
Nvidia’s drop was the biggest one-day loss in U.S. history. It shows Nvidia was hit harder than other tech giants.
What was Nvidia’s immediate financial response to the stock price drop?
Nvidia’s leaders talked to investors. They said demand for GPUs is still strong and they’re confident in their future.
How is Nvidia planning to respond to the increased competition from DeepSeek?
Nvidia talked about the importance of AI. They said they’re ready for DeepSeek’s new AI models that use Nvidia’s tech.
What is DeepSeek’s new AI model, and how does it impact Nvidia?
DeepSeek’s new AI model is cheap and quick to make. It’s a big challenge for Nvidia in the AI market.
What ripple effects did Nvidia’s stock price drop have on the semiconductor industry?
The drop hit the whole semiconductor industry. U.S. chipmakers like Micron and AMD saw big stock drops. It also affected chipmakers worldwide.
What are analysts saying about Nvidia’s future?
Analysts have mixed views. Some worry about high AI investments. Others see growth in AI and computing.
How did Nvidia’s market performance look before the recent stock price drop?
Before the drop, Nvidia was doing well. It was growing faster than other tech giants.
What are the future projections for Nvidia post-stock price drop?
After the drop, Nvidia’s future looks hopeful. It’s still a leader in AI and GPUs. There’s a chance for recovery and growth.