Nvidia (NVDA, Financial) has lost $1 trillion in market value since hitting a record high earlier this year, dropping out of the $3 trillion club as investor concerns mount over geopolitical risks and AI competition.
The stock has fallen more than 20% year-to-date, with a major hit coming on January 27, when DeepSeek (DEEPSEEK), a Chinese AI startup, unveiled its R1 AI model, erasing $589 billion from Nvidia's valuation. DeepSeek's claims of developing low-cost large language models without human supervision have raised concerns about cheaper AI alternatives.
The sell-off has intensified in recent days, with shares down nearly 10% amid Trump's tariff rhetoric on China, Canada, and Mexico. Investors are also wary of reports that Chinese firms are finding workarounds to access Nvidia's most advanced chips despite U.S. export restrictions.
As of March 7, Nvidia's market cap stands at $2.7 trillion, leaving Apple (AAPL, Financial) as the only U.S. company still above the $3 trillion mark.
