Shares for leading US chip firm Nvidia dropped by almost 17% on Monday after the emergence of DeepSeek stunned Silicon Valley.

It feels like this day was always going to come — when all the artificial-intelligence names collapse — but one might have imagined it would come from, say, a profit warning from Nvidia. Instead, it comes from what appears to be an Nvidia consumer, Chinese AI service provider DeepSeek.

Nvidia stock is set for its worst trading day in recent history — however, two Wall Street analysts remain bullish, despite new competition.

US-listed shares of tech giants Nvidia, TSMC, and others are gaining some lost ground after China's DeepSeek rattled stock markets.

A slew of stocks, including chip maker Nvidia, fell Monday after Chinese startup DeepSeek released an AI model that runs on less-advanced chips and at a lower cost than U.S. rivals.

A major tech stock sell-off ensued Monday as the debut of DeepSeek rattled investors. Nvidia, Alphabet, and Microsoft were among the biggest losers.

Nvidia’s rocket ride to the top of artificial intelligence (AI) mountain ended abruptly this week, with the company’s shares suffering a staggering 17% drop and nearly $600bn wiped from its market value in a single day.