The Direxion Daily NVDA Bull 2X Shares (NVDU) closed down 33.8% to $68.36 on January 27, 2025, as Nvidia's stock plummeted 15.28% to $120.83 amid concerns over rising competition from Chinese AI startup DeepSeek. DeepSeek's introduction of AI models that rival Western counterparts at a fraction of the cost has raised fears about Nvidia's dominance in the AI hardware market. The R1 model, reportedly 27 times cheaper than offerings from established players like OpenAI, threatens Nvidia's high-margin business model. This development has led to a massive sell-off, with Nvidia losing nearly $600 billion in market cap, marking the largest one-day loss in U.S. history. The broader tech sector also suffered, with the Nasdaq 100 dropping 3.3% and the iShares Semiconductor ETF SOXX falling over 7%. Analysts remain skeptical about DeepSeek's long-term impact, but the immediate market reaction underscores the heightened competition in the AI space.