04:40 AM EST, 01/28/2025 (MT Newswires) -- Nvidia's ( NVDA ) 17% share-price slump on Monday reduced its market capitalization by the most on record in a day for any company after China's DeepSeek called into question the competitiveness of its US rivals.

Nvidia's ( NVDA ) market capitalization fell to about $2.9 trillion at the close on Monday from about $3.493 trillion on Friday last week, a decline of roughly $593 billion.

Trading volume in the company's shares soared to about 802.7 million on Monday, compared with its daily average of roughly 211.7 million.

DeepSeek, a private Chinese AI firm, launched a free, open-source large-language model, claiming it was developed in two months at a cost of under $6 million, according to a Wedbush Securities note Monday.

Nvidia's ( NVDA ) shares were up 4.5% in premarket activity on Tuesday.