AI Rout Triggers Broad Stock Sell‑off as Nvidia Plummets 16%

AI Rout Sends Wall Street Tumbling

In the wake of a sudden AI rout, U.S. equities opened lower, with the Nasdaq bearing the brunt of the sell‑off. AI‑infrastructure firms faced double‑digit declines, the most dramatic being Nvidia, which dropped ↓ 16% after a warning on its latest chip roadmap.

Investors cited fresh data from China’s DeepSeek as a catalyst, prompting a cascade of profit‑taking across the sector. The Nasdaq composite slipped ↓ 1.4%, while the S&P 500 and Dow Jones showed modest drifts.

“The market is reacting to a convergence of supply‑side concerns and demand uncertainty in the AI space,” noted a senior analyst at Reuters.

Other heavyweight chip makers such as AMD and Intel were not immune, each registering single‑digit losses. Liquidity remains thin as traders await clearer guidance on AI spending cycles.

For a broader perspective, see the latest analysis on Bloomberg, which flags potential ripple effects across downstream software providers.