The YieldMax NVDA Option Income Strategy ETF (NVDY) closed down 16.82% at $19.19 on January 27, as Nvidia's shares plummeted 15.28% to $120.83 amid a market shake-up triggered by Chinese AI startup DeepSeek. DeepSeek's introduction of cost-effective AI models, particularly the R1 model, has challenged Nvidia's dominance in the AI hardware market by offering similar performance at a fraction of the cost. This development has raised concerns about Nvidia's high-margin business model, as DeepSeek's technological advancements, such as their mixed-precision training framework, allow for significant memory savings and reduced GPU requirements. The broader semiconductor index, represented by SOX, also fell 9.15% to 4853.24, reflecting the widespread impact of DeepSeek's emergence on the tech sector.