Nvidia is no longer the world's most valuable company after suffering the biggest stock market drop in history.

The chipmaker shed more than $589 billion in value on Monday after its stock dropped around 17 percent.

The plunge cost the company the equivalent value of Netflix's market cap or the entire GDP of countries such as Ireland, Sweden or Belgium.

Nvidia's CEO Jensen Huang personally saw $21 billion wiped off his net worth on Monday due to the stock he holds in the company.

The losses came after investors panicked about the implications of a new Chinese AI that appears to compete with its American rivals but for a fraction of the cost.