A recent shockwave from Chinese AI company DeepSeek has dramatically shifted the course for U.S. chip giant Broadcom. After initially reaping the benefits of the AI boom, Broadcom’s stock soared but has now taken a nosedive, dropping more than 17%.
Broadcom’s stock plummeted 17.40% on Thursday, closing at $202.13 on the New York Stock Exchange. This sharp decline shaved off a significant portion of the company’s value, reducing its market capitalization to $947.4 billion and pushing it below the once-coveted $1 trillion mark.
Broadcom’s losses have even outpaced those of Wall Street’s AI darling, Nvidia, whose stock fell 16.97% on the same day.
This suggests that Broadcom has been particularly hard-hit by the recent developments.
The company quickly became a new favorite among Wall Street investors, largely thanks to its development of AI-specific chips. This innovation set it apart from its key rival, Nvidia. These advancements helped propel Broadcom’s stock, sending its market cap soaring past the $1 trillion threshold and catapulting it to the position of the eighth-largest U.S. company by market value.
However, the DeepSeek shockwave seems to have wiped out these impressive gains in one fell swoop, leaving investors scrambling to reassess their positions.