Tue Jan 28 07:12:45 UTC 2025: ## China’s Cheap AI Model Triggers Massive US Semiconductor Sell-Off
**New York, NY** – The US semiconductor sector experienced a dramatic downturn Monday, triggered by the release of a low-cost artificial intelligence (AI) model from a Chinese deep-learning startup. The Nasdaq suffered its largest single-day percentage drop since December 18th. The impact was particularly severe on AI giant Nvidia, which plummeted 17%, wiping approximately $593 billion off its market capitalization. The news follows two days of market gains and adds to existing concerns, including the “Trump factor,” contributing to a broader market sell-off. While the overall market showed losses, reflected in declines in the Sensex and Nifty indices, some individual stocks like Reliance showed resilience. The development highlights the growing competitive pressure from China in the rapidly evolving AI landscape and its potential ramifications for the US tech sector.
First Piper 