On Jan. 27, Nvidia ( NVDA -3.67%) fell 17%, erasing over $590 billion from its market cap. It marked the greatest single-day market-cap destruction for a company in U.S. stock market history. While the growth stock recovered nearly half of those losses the following day, there are still lessons to be learned from this historic market event.

Shares of semiconductor makers were dropping early Monday as a Chinese AI model triggered questions over their lofty valuations.

Nvidia shares plunged Monday amid concerns that a powerful, cost-efficient AI model developed by Chinese startup DeepSeek could herald a reduction in Big Tech’s investment in the chipmaker’s pricey AI offerings.

Rebounding tech stocks drove U.S. indexes higher Tuesday, a day after they tumbled on doubts about whether the artificial-intelligence frenzy really needs all the dollars being poured into it. The S&P 500 climbed 0.

Live Updates Technology Stocks Rising Today 2:09 pm While NVIDIA (Nasdaq: NVDA) is down 17% today, many stocks across technology are rallying. Let’s take a look at a few notable stocks: Apple (Nasdaq: AAPL):Is up nearly 4% today.

Chuck Zodda, managing partner and Chief Investment Officer from the Armstrong Advisory Group discusses the dip of tech stocks, especially Nvidia after the announcement of Chinese AI start-up DeepSeek.