"DeepSeek's AI Surge Sinks U.S. Markets, NVIDIA Plunges 15%"

Monday's trading session saw significant movements in the stock market, with several key players making headlines. Among them were NVIDIA (NVDA), AT&T (T), and various cryptocurrency stocks.

Chinese AI startup DeepSeek has been making waves in the tech industry, causing a sharp decline in global stock markets. The company's release of a large language model (LLM) in December 2024, which performs on par with OpenAI and other AI systems despite U.S. chip import restrictions, has positioned it as a top competitor to OpenAI and NVIDIA. This development has led to a massive sell-off in U.S. stock markets, with the NASDAQ composite index down by 99.38%, Dow Jones global down by 140.82%, and S&P 500 falling by 17.47%. Meanwhile, Chinese tech shares have surged to historical levels as investors turn to DeepSeek following its rapid rise.

NVIDIA's stock experienced a significant decline on Monday, trading at 142.62, marking a 4.62% drop from the previous day. This decline comes amid rumors that a Chinese quant fund high-flyer has access to 50,000 of NVIDIA's H100 AI GPUs from the last generation of AI chips. The negative market sentiment has also affected AI-themed cryptocurrencies, with all AI coins experiencing one of the largest dips of 2025. Notable declines include Render (RNDR) dropping by 15.72%, Injective (INJ) by 9.82%, Artificial Superintelligence Alliance (FET) by 11.65%, Filecoin (FIL) by 11.09%, Near Protocol (NEAR) by 12.54%, and Internet Computer (ICP) by 10.75%.

NVIDIA's intraday loss widened to 15% on Monday, as the company continues to face headwinds in the AI sector. The decline in NVIDIA's stock has raised concerns about the continued dominance of U.S. AI companies, leading to a market sell-off as investors panic. As the AI sector evolves, investors will be closely watching the performance of AI stocks and cryptocurrencies, as well as the competitive landscape