500 richest people in the world suffered a total loss of $ 108 billion on Monday. It also includes NVIDIA co-founder Jensen Huang. The damage was caused by a steep decline in tech shares due to Chinese AI developer Deepseek. The possibility of low -cost Chinese AI model emerging increased the concerns of investors, due to which global investors on Monday sold out of the shares of tech companies. Tech share -based index Nasdaq fell 3.1%. Chipmaker Nvidia shares broke up to 17%, causing the company’s MCAP to decline $ 593 billion in just one day.
Earthquake in tech shares, NVidia gets a shock of $ 593 billion
Due to this, Nasdaq fell 3.1% on Monday. NVIDIA shares saw a decline of nearly 17%, leading to a record of $ 593 billion in the company’s market cap (MCAP). This is the biggest loss for any company in the history of Wall Street a day. The damage that NVidia suffered on Monday was more than double the company’s decline in September last year.
Broadcom INC suffered the second biggest shock in Nasdaq, with shares of 17.4%. After this, the shares of the Chhatgpt supporters Microsoft fell down 2.1%, and the shares of Google’s parent company Alphabet closed down by 4.2%.
World’s top rich drowned $ 108 billion
Billions of billionaires associated with Artificial Intelligence suffered the most damage. According to the Bloomberg Billionaires Index, Nvidia co-founder Jenson Huang’s wealth fell by $ 20.1 billion, which is 20 percent of his total assets. At the same time, Larry Ellison, Co-Founder of Oracle Corp, suffered a loss of $ 22.6 billion, which is 12 percent of his assets.
Dell Inc.’s Michael Dell lost $ 13 billion and Binance Holdings Ltd’s co-founder Changpeng “CZ” Jhao lost $ 12.1 billion.
The impact of selling started from Asia showed on markets around the world
The Philadelphia Semiconductor Index declined by 9.2%, the biggest decline since March 2020. The most damage in this index was to Marvell Technology, with shares of which fell to 19.1%.
The decline in the US stock market was seen after selling from Asia. Japan’s SoftBank Group’s shares closed down 8.3%. This was followed by a 7% decline in ASML shares in Europe.
Deepsek’s entry can reduce chip and data center demand
Last week, Chinese Startup Deepsek launched a free AI Assistant. The company claims that this AI Assistant works at low data and extremely low cost. Until Monday, January 27, this assistant overtook the US AI Tool Chatgpt on Apple’s App Store.
Bryan Jacobsen, the chief economist of Annex Wealth Management at Menomony Falls, Wisconsin, said, “If it is true that Deepsek is a better option, it can affect the whole AI (AI )’s neorac Has helped to pursue. ”
He said, “This may mean the demand for chip will decrease, the need for large -scale energy production to run these models will be reduced, and the need for a large -scale data center will also decrease.” The enthusiasm about AI has inspired the large -scale capital flow in equity in the last 18 months, increasing the valuation and the stock markets reached new heights.