The emergence of a small Chinese artificial intelligence (AI) company called DeepSeek initially put a giant hole in the U.S. stock market. Tech stocks -- particularly those connected to the AI trend -- got crushed,

Nvidia stock was dropping Monday. The threat of sweeping tariffs on U.S. imports has raised the prospect of similar levies being imposed on semiconductors.Nvidia shares were down 4.7% at $114.40. The stock fell 3.

According to a paper authored by the lab, the DeepSeek-R1 model outperforms cutting-edge models such as OpenAI’s o1 and Meta’s Llama AI models across multiple benchmarks.

DeepSeek has launched an AI model that was reportedly developed with significantly less computational power than traditional methods. Shares of Nvidia are under pressure amid concerns that DeepSeek's methods may undermine demand for its high-performance GPUs.

While the demand is there, it's clear that's not the sole reason why Nvidia's RTX 50 series is impossible to find in stores. Many retailers received fairly low stock quantities, as Nvidia reportedly experienced manufacturing issues.

Discover why NVIDIA's stock dropped and how U.S. tariffs on Taiwanese semiconductors are reshaping the tech industry. NVIDIA stock