Why Nvidia Stock Plummeted This Week
Nvidia (NASDAQ: NVDA) stock saw a big valuation pullback in this week's trading. The graphics processing unit (GPU) leader's share price fell 15.8% from its level at the previous week's market close, according to data from S&P Global Market Intelligence.
Nvidia was hit with sell-offs this week as information surrounding the new R1 artificial intelligence (AI) model from DeepSeek signaled a potential paradigm shift in AI training and inference. In addition to the possibility that new approaches to AI software could mean lower demand for Nvidia's GPUs, the company's stock also saw pullbacks in conjunction with geopolitical and macroeconomic pressures.
Nvidia stock saw a massive pullback in Monday's trading, closing out the daily session down 17%. The sell-off worked out to a roughly $600 billion pullback in the GPU leader's market capitalization and marked the biggest-ever valuation pullback for a company on a pure-dollar basis.
Source Fool.com
