Nvidia suffered a shocking $589 billion market cap wipeout in a single day and a share price fall of 17%.Â
This was triggered by DeepSeek’s launch of a free AI assistant, which seemingly boasted greater efficiency and lower costs than existing products.
While Nvidia somewhat rebounded the following day (+9%), the sharp decline exposed the risks of inflated AI (artificial intelligence) valuations and the market’s heavy reliance on a handful of tech giants, with investor capital remaining highly concentrated in the renowned “Magnificent Seven”.
So please remember that diversification is key as this is just one stock of many in our portfolios, and whilst sometimes it seems that companies can do no wrong and their shares just keep going up, they can also go the other way and fall hard too.
