Dow Jones Plunges 750 Points; Nvidia Drops As Warren Buffett Report Looms

The Dow Jones Industrial Average (DJIA) took a significant hit today, dropping 750 points, as investor sentiment shifted and concerns about the broader economic landscape weighed on the market. The decline in the DJIA comes amidst a broader tech downturn, with the Nasdaq Composite falling 3.1%, its worst day since December. This selloff was triggered by concerns over mounting competition from the Chinese artificial intelligence firm DeepSeek, which launched an open-source R1 model that was trained in just two months at a fraction of the cost required by US-based firms like OpenAI. This development has raised questions about the sustainability of high AI-related spending, particularly on Nvidia's graphics processing units (GPUs) that dominate the AI chip market.

Nvidia's stock price plummeted 17% to close at $118.58, marking its worst day on the market since March 16, 2020, which was early in the Covid pandemic. After Nvidia surpassed Apple last week to become the most valuable publicly traded company, the stock's drop Monday led a 3.1% slide in the tech-heavy Nasdaq. The sell-off was sparked by concerns that Chinese artificial intelligence lab DeepSeek is presenting increased competition in the global AI battle. In late December, DeepSeek unveiled a free, open-source large language model that it said took only two months and less than $6 million to build, using reduced-capability chips from Nvidia called H800s.

Nvidia's graphics processing units (GPUs) dominate the market for AI data center chips in the U.S., with tech giants such as Alphabet, Meta, and Amazon spending billions of dollars on the processors to train and run their AI models. Analysts at Cantor wrote in a report Monday that the release of DeepSeek's latest technology has caused "great angst as to the impact for compute demand, and therefore, fears of peak spending on GPUs." However, they believe that advancements in AI will most likely lead to "the AI industry wanting more compute, not less," and recommend buying Nvidia shares.

The recent drop in Nvidia's stock price has had significant implications for the broader tech sector and the overall market. The sharp decline in Nvidia's stock price was part of a broader tech downturn that saw the Nasdaq Composite fall 3.1%, its worst day since December. This selloff was triggered by concerns over mounting competition from the Chinese artificial intelligence firm DeepSeek, which launched an open-source R1 model that was trained in just two months at a fraction of the cost required by US-based firms like OpenAI. This development has raised questions about the sustainability of high AI-related spending, particularly on Nvidia's graphics processing units (GPUs) that dominate the AI chip market.

Nvidia's stock price plummeted 17% to close at $118.58, marking its worst day on the market since March 16, 2020, which was early in the Covid pandemic. After Nvidia surpassed Apple last week to become the most valuable publicly traded company, the stock's drop Monday led a 3.1% slide in the tech-heavy Nasdaq. The sell-off was sparked by concerns that Chinese artificial intelligence lab DeepSeek is presenting increased competition in the global AI battle. In late December, DeepSeek unveiled a free, open-source large language model that it said took only two months and less than $6 million to build, using reduced-capability chips from Nvidia called H800s.

Nvidia's graphics processing units (GPUs) dominate the market for AI data center chips in the U.S., with tech giants such as Alphabet, Meta, and Amazon spending billions of dollars on the processors to train and run their AI models. Analysts at Cantor wrote in a report Monday that the release of DeepSeek's latest technology has caused "great angst as to the impact for compute demand, and therefore, fears of peak spending on GPUs." However, they believe that advancements in AI will most likely lead to "the AI industry wanting more compute, not less," and recommend buying Nvidia shares.

The recent drop in Nvidia's stock price has had significant implications for the broader tech sector and the overall market. The sharp decline in Nvidia's stock price was part of a broader tech downturn that saw the Nasdaq Composite fall 3.1%, its worst day since December. This selloff was triggered by concerns over mounting competition from the Chinese artificial intelligence firm DeepSeek, which launched an open-source R1 model that was trained in just two months at a fraction of the cost required by US-based firms like OpenAI. This development has raised questions about the sustainability of high AI-related spending, particularly on Nvidia's graphics processing units (GPUs) that dominate the AI chip market.

Nvidia's stock price plummeted 17% to close at $118.58, marking its worst day on the market since March 16, 2020, which was early in the Covid pandemic. After Nvidia surpassed Apple last week to become the most valuable publicly traded company, the stock's drop Monday led a 3.1% slide in the tech-heavy Nasdaq. The sell-off was sparked by concerns that Chinese artificial intelligence lab DeepSeek is presenting increased competition in the global AI battle. In late December, DeepSeek unveiled a free, open-source large language model that it said took only two months and less than $6 million to build, using reduced-capability chips from Nvidia called H800s.

Nvidia's graphics processing units (GPUs) dominate the market for AI data center chips in the U.S., with tech giants such as Alphabet, Meta, and Amazon spending billions of dollars on the processors to train and run their AI models. Analysts at Cantor wrote in a report Monday that the release of DeepSeek's latest technology has caused "great angst as to the impact for compute demand, and therefore, fears of peak spending on GPUs." However, they believe that advancements in AI will most likely lead to "the AI industry wanting more compute, not less," and recommend buying Nvidia shares.

The recent drop in Nvidia's stock price has had significant implications for the broader tech sector and the overall market. The sharp decline in Nvidia's stock price was part of a broader tech downturn that saw the Nasdaq Composite fall 3.1%, its worst day since December. This selloff was triggered by concerns over mounting competition from the Chinese artificial intelligence firm DeepSeek, which launched an open-source R1 model that was trained in just two months at a fraction of the cost required by US-based firms like OpenAI. This development has raised questions about the sustainability of high AI-related spending, particularly on Nvidia's graphics processing units (GPUs) that dominate the AI chip market.

Nvidia's stock price plummeted 17% to close at $118.58, marking its worst day on the market since March 16, 2020, which was early in the Covid pandemic. After Nvidia surpassed Apple last week to become the most valuable publicly traded company, the stock's drop Monday led a 3.1% slide in the tech-heavy Nasdaq. The sell-off was sparked by concerns that Chinese artificial intelligence lab DeepSeek is presenting increased competition in the global AI battle. In late December, DeepSeek unveiled a free, open-source large language model that it said took only two months and less than $6 million to build, using reduced-capability chips from Nvidia called H800s.

Nvidia's graphics processing units (GPUs) dominate the market for AI data center chips in the U.S., with tech giants such as Alphabet, Meta, and Amazon spending billions of dollars on the processors to train and run their AI models. Analysts at Cantor wrote in a report Monday that the release of DeepSeek's latest technology has caused "great angst as to the impact for compute demand, and therefore, fears of peak spending on GPUs." However, they believe that advancements in AI will most likely lead to "the AI industry wanting more compute, not less," and recommend buying Nvidia shares.

The recent drop in Nvidia's stock price has had significant implications for the broader tech sector and the overall market. The sharp decline in Nvidia's stock price was part of a broader tech downturn that saw the Nasdaq Composite fall 3.1%, its worst day since December. This selloff was triggered by concerns over mounting competition from the Chinese artificial intelligence firm DeepSeek, which launched an open-source R1 model that was trained in just two months at a fraction of the cost required by US-based firms like OpenAI. This development has raised questions about the sustainability of high AI-related spending, particularly on Nvidia's graphics processing units (GPUs) that dominate the AI chip market.

Nvidia's stock price plummeted 17% to close at $118.58, marking its worst day on the market since March 16, 2020, which was early in the Covid pandemic. After Nvidia surpassed Apple last week to become the most valuable publicly traded company, the stock's drop Monday led a 3.1% slide in the tech-heavy Nasdaq. The sell-off was sparked by concerns that Chinese artificial intelligence lab DeepSeek is presenting increased competition in the global AI battle. In late December, DeepSeek unveiled a free, open-source large language model that it said took only two months and less than $6 million to build, using reduced-capability chips from Nvidia called H800s.

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