Finance
Nvidia short bets rake in over $6 billion in profits after DeepSeek panic
Published by Global Banking & Finance Review®
Posted on January 28, 2025
1 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 28, 2025
1 min readLast updated: January 27, 2026
Nvidia short sellers gained $6.6 billion after DeepSeek's AI models spooked the market, causing Nvidia's market value to drop by $593 billion.
By Shashwat Chauhan
(Reuters) - Short sellers of artificial intelligence-related stocks raked in bumper profits after the smashing debut of low-cost AI models from China's DeepSeek spooked Wall Street, with bets against Nvidia yielding record profits totaling more than $6 billion.
Traders betting against AI-darling Nvidia earned profits of about $6.6 billion - the biggest single-day move ever on the stock - according to data analytics firm Ortex.
Nvidia saw $593 billion wiped off its market value on Monday, in the biggest single-session loss ever for any company, after Chinese startup DeepSeek launched AI models that it said are at par or better than industry-leading models in the United States, at a fraction of the cost.
Short sellers of chipmaker Broadcom also earned more than $2 billion in profits.
Other AI-related stocks, such as server-maker Super Micro, data-center operator Equinix and energy provider Vistra, also witnessed heavy losses on Monday, giving investors betting against these firms combined profits of more than $900 million, according to Ortex.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Pooja Desai)
The article discusses the profits made by short sellers of Nvidia and other AI stocks following the launch of DeepSeek's AI models.
Short sellers of Nvidia earned approximately $6.6 billion in profits.
DeepSeek's AI models led to significant market losses for AI-related stocks, including a $593 billion loss in Nvidia's market value.
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