EXCLUSIVE: Nvidia Hardest Hit Among Mag 7 Stocks By DeepSeek, Poll Shows — And This Stock Ranked Second

The valuations of several Magnificent 7 stocks were hit hard Monday with news of the capabilities of DeepSeek, a Chinese AI that is said to be more cost-effective.

A Benzinga reader poll shows that DeepSeek could hurt one Mag 7 stock the most.

What Happened: Semiconductor leader NVIDIA Corporation NVDA lost around $600 billion in value Monday with shares falling 17%. The company went from being the most valuable in the world to the third most valuable.

The loss of around $600 billion in value marked the largest single-day value drop in U.S. stock history.

Investors were concerned that Nvidia could suffer from a more cost-effective AI model, and the rise of DeepSeek could mean less spending on products from the semiconductor giant.

A Benzinga reader poll found that when it comes to which Magnificent 7 stocks could be the most impacted by DeepSeek, Nvidia wins rather handily.

"Which Magnificent 7 company could be hit hardest by China's DeepSeek AI platform," Benzinga asked.

The results were:

• Nvidia: 82%
• Microsoft Corporation MSFT: 12%
• Alphabet Inc GOOGGOOGL: 3%
• Amazon.com Inc AMZN: 2%
• Meta Platforms META: 2%
• Apple Inc AAPL: 0%
• Tesla Inc TSLA: 0%

The poll showed Nvidia as the clear winner with 82%, reflecting its status as the steepest decliner among the seven stocks on Monday.

Ranking second was Microsoft, which has become a big investor in the AI sector, including a stake in OpenAI. The capabilities of DeepSeek were quickly compared to OpenAI on Monday and could ramp up a rivalry between the two companies. Microsoft stock fell 2.1% on Monday.

Ranking third was Alphabet with 3% followed by Amazon and Meta at 2%. Tesla and Apple did not receive any responses in the poll, suggesting these companies are potentially less impacted by the rise of DeepSeek.

Read Also: Jensen Huang Loses $20B In Wealth: How DeepSeek Hit Nvidia Stock And World’s Richest People

Why It's Important: Many technology stocks came roaring back on Tuesday, showing fears of DeepSeek could be overblown.

Nvidia stock was up 8.8% on Tuesday, while Microsoft also gained 2.9%.

The Roundhill Magnificent 7 ETF MAGS, which tracks the seven stocks mentioned above, was up 3% on Tuesday. The ETF was down 3.1% Monday.

A separate Benzinga reader poll asked if DeepSeek could drive down the valuation of Magnificent 7 stocks in 2025. The poll found that 57% said yes that valuations could face pressure.

Several leading investment voices called Monday's selloff of Nvidia stock a buying opportunity.

"To me, it's an overreaction," Fundstrat Global Advisors' head of research Tom Lee said Monday.

Lee compared Monday’s drop to a March 2020 Nvidia stock decline that ended up being a good entry point for investors.

“I’d be looking at this as an opportunity.”

Wedbush analyst Daniel Ives called DeepSeek the "Temu of AI" in a tweet, comparing the Chinese AI to a Chinese ecommerce company that has tried to disrupt Amazon with low prices, but potentially inferior goods.

Ives also questioned the reports that DeepSeek built its AI models without using Nvidia products, saying it was unlikely.

"We expect more innovation in AI/LLM model costs to come down. However, saying DeepSeek was built for $6 million with no Nvidia next generation hardware is likely a fictional story that is at the heart of the debate and drove a massive tech-sell off."

The analyst hinted that earnings reports from Meta and Microsoft on Wednesday after market close could show the importance of AI in the U.S.

"We expect Meta and Microsoft to reiterate their massive 2025 AI driven Capex numbers of $60 billion-$65 billion and $80 billion respectively with a firm tone."

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The study was conducted by Benzinga from Jan. 27, 2025 through Jan. 28, 2025. It included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 67 adults.

Image created using photos from Shutterstock.