Dip buyers didn’t step in until Nvidia shares had fallen more than 21% from their peak, a phenomenon that’s happened only a handful of times in recent years. It points to increasing investor caution about AI spending — especially because DeepSeek claimed to use fewer chips for its AI model.
Nvidia Corp investors have typically rushed to buy the stock on any dips. But the mood since the DeepSeek-driven rout has been different, signalling that fears of a slowdown in AI spending aren’t going away.
Nvidia shares slumped 17% in a single day, erasing about US$590 billion from the company’s market capitalization, after the Chinese AI startup claimed high performance at a lower cost. The stock has since regained some ground, but it’s still more than 11% below its January record high. That’s despite key customers Amazon.com Inc, Alphabet Inc, Meta Platforms Inc and Microsoft Corp planning a combined US$300 billion in capital expenditures this year.
