AI Rout Triggers Sharp Drop in US Stocks as Nvidia Plummets 16%

AI rout Sends US Markets Tumbling

The broader sell‑off in artificial‑intelligence equities accelerated after Chinese start‑up DeepSeek unveiled a competitive model, igniting an AI rout that rattled Wall Street. The Nasdaq Composite slipped ↓ 1.5%, while chipmaker Nvidia tumbled ↓ 16% after missing revenue forecasts.

Infrastructure firms feel the pressure

Companies that supply data‑center hardware and cloud services posted double‑digit declines, reflecting investors’ fear of oversupply. Analysts at Reuters warned that the sector could see further erosion if pricing wars intensify.