AI Rout Triggers Massive Stock Decline as Nvidia Slumps 16%

The broader AI rout that began after China’s DeepSeek announcement sent US equities tumbling, with the Nasdaq leading the slide. Nvidia alone dropped ↓ 16%, while several AI‑infrastructure firms recorded double‑digit losses, some as steep as ↓ 14%.

AI Rout Deepens Across US Markets

Investors scrambled to re‑price exposure to artificial‑intelligence hardware, prompting a sell‑off that spilled into unrelated sectors. Reuters noted that the sell‑off widened the Nasdaq’s decline to over 2% in a single session.

“The market reaction reflects a swift reassessment of AI growth forecasts,” said a senior analyst at Bloomberg.

As the AI rout progresses, traders are watching for any sign of stabilization in chip inventories and corporate earnings guidance.