Should you hold on to Nvidia or sell up now? Biggest one-day sell-off in Wall St history - but experts say don't panic
Should you hold on to Nvidia or sell up now? Biggest one-day sell-off in Wall St history - but experts say don't panic
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It was the biggest single one-day sell-off in corporate history. Shares in microchip giant Nvidia cratered on Monday, losing almost £500billion, after Chinese start-up DeepSeek developed a free-to-use artificial intelligence (AI) model that it claimed can compete with US rivals such as Chat GPT for a fraction of the cost.
![[Advancements: Some analysts have proclaimed that DeepSeek’s advances were actually a good thing for the chip sector as a whole and therefore for Nvidia]](https://i.dailymail.co.uk/1s/2025/01/28/18/94606083-0-image-a-2_1738087750672.jpg)
Over the weekend, it became the most downloaded iPhone app in the US. The news called into question the huge sums being spent on AI by American firms, along with their demand for, and reliance on, Nvidia’s most expensive, state-of-the-art chips. Even ‘America First’ President Donald Trump hailed DeepSeek’s breakthrough, saying it was ‘a good thing for us’ if AI could be done ‘cheaper’ to get ‘the same result’.
Nvidia is particularly exposed to DeepSeek’s low-cost model because the US tech titan dominates the market for the most high-end and expensive chips used to power AI models. Market shock: Nvidia, led by boss Jensen Huang (pictured), lost almost $600bn in value, after China claimed its new Deepseek AI chatbot was far more efficient than rivals.
The turmoil has left small investors in the UK, many of whom own shares in Nvidia either directly or through their pensions or investment funds, with important questions that could seriously affect their wealth. Having been de-throned as the world’s biggest quoted company in Monday’s rout, should they sell out of Nvidia? Or is it best to keep their nerve and wait for the shares to bounce back?.
