DeepSeek sell-off reminds investors of the biggest earnings story holding up the stock market

Given the concerns over rising competition in the AI sector and the recent rapid sell-off of major tech stocks, it appears that investor sentiment is turning negative. Companies like Nvidia and Broadcom, heavily tied to AI technology, have already shown significant drops, indicating a potential bearish trend.

Broadcom is likely to continue facing headwinds due to its exposure to the AI technology sector and investor skepticism regarding its growth. Given the substantial decline, further losses may occur as investors reassess their strategies based on competition's influence on earnings.

Microsoft may also experience pressure from the competition and decreasing investor confidence in tech looks likely to drag its recovery momentum. Maintaining high expectations amid competitive threats could lead to downward adjustments in its stock performance.