Shares of Nvidia (NASDAQ: NVDA) suffered a double-digit decline in January, primarily due to the threat from Chinese artificial intelligence (AI) start-up DeepSeek. AI stocks plunged on Jan. 27 as investors reacted to the new chatbot DeepSeek R1 and DeepSeek's 22-page research paper that explained the engineering and technology behind the low-cost,

January was filled with twist and turns for Wall Street. Investors had to digest the ordinary flow of news, including a jobs report that turned out to be much stronger than expected, a decision from the Federal Reserve to hold interest rates steady,

On Jan. 27, Nvidia ( NVDA -2.84%) 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.