Nvidia stock dropped more than 11% as a social media panic over the potential rise of a Chinese AI model upended chip stocks and the broader AI investment thesis early Monday.

The retired chip CEO claimed "the markets are getting it wrong" on Monday after investors triggered a sell-off in response to China's DeepSeek.

Investors worldwide stand to lose more than $1 trillion on Monday because of the sudden fear that the market-sustaining AI spending boom might have been for nothing. Why it matters: The so-called Magnificent 7 stocks are heavily leveraged to hundreds of billions of dollars in planned AI investment — and the entire market,