Tech Stocks Tumble Nasdaq Drops 3% Amid 2025 01 27

By Sinéad Carew, Amanda Cooper, Ankur Banerjee

NEW YORK/LONDON/SINGAPORE (Reuters) -Global investors dumped tech stocks on Monday as they worried that the emergence of a low-cost Chinese artificial intelligence model would threaten the dominance of AI leaders like Nvidia, evaporating $593 billion of the chipmaker's market value, a record one-day loss for any company on Wall Street.
Last week, Chinese startup DeepSeek launched a free AI assistant that it says uses less data at a fraction of the cost of incumbent services. By Monday, the assistant had overtaken U.S. rival ChatGPT in downloads from Apple's app store.

This led the tech-heavy Nasdaq to fall 3.1% on Monday. Nvidia was the Nasdaq's biggest drag, with its shares tumbling just under 17% and marking a record one-day loss in market capitalization for a Wall Street stock, according to LSEG data.

Nvidia's market cap loss on Monday was more than double the previous one-day record, set by Nvidia last September.

The Nasdaq's next biggest drag was chipmaker Broadcom Inc., which finished down 17.4%, followed by ChatGPT backer Microsoft, which fell 2.1%, and then Google parent Alphabet, which ended down 4.2%.

The Philadelphia semiconductor index tumbled 9.2%, for its biggest percentage drop since March 2020, and its biggest decliner was Marvell Technology, which tumbled 19.1%.

U.S. equity declines followed a selloff that started in Asia, with Japan's SoftBank Group finishing down 8.3%, and moved through Europe, where ASML fell 7%.

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