Why Nvidia Stock Lost 11% in January
Shares of Nvidia (NASDAQ: NVDA) suffered a double-digit decline in January, primarily due to the threat from Chinese artificial intelligence (AI) start-up DeepSeek.
AI stocks plunged on Jan. 27 as investors reacted to the new chatbot DeepSeek R1 and DeepSeek's 22-page research paper that explained the engineering and technology behind the low-cost, open-source AI model. Among other things, DeepSeek claimed that it cost just $5.5 million to train the model, a tiny fraction of the billions that Nvidia's customers have paid for the components that run AI chatbots like ChatGPT.
According to data from S&P Global Market Intelligence, the stock finished the month down 11%. As you can see from the chart below, Nvidia was in the green for most of the month until the DeepSeek news sank the stock.
Source Fool.com
