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A blog post by investment analyst Jeffrey Emanuel led to a staggering drop in Nvidia Corp.'s stock, wiping out almost $600 billion in market capitalization—the largest single-day loss for any company to date. Emanuel's 12,000-word thesis, published on multiple platforms, argued that Nvidia was overvalued due to emerging competition from the China-based company DeepSeek, which has developed an AI product using fewer resources.
Within hours of publication, the blog gained significant traction among tech investors and analysts, with prominent figures sharing it on social media, leading to increased scrutiny of Nvidia. According to MarketWatch, the massive sell-off began on Monday following the viral spread of Emanuel's critique. Just before the stock plummeted roughly 12.5% at market open, Wall Street analysis overwhelmingly rated Nvidia as a buy, with 61 out of 67 analysts holding this view.
Emanuel’s arguments pointed to potential unsustainability in Nvidia's business model as companies explore cheaper, more efficient AI models and develop in-house semiconductor options, sparking profound concern throughout Silicon Valley.