DeepSeek Shakes Up Stocks as Traders Fear for US Tech Leadership
Published On Jan 27, 2025, 12:08 AM
DeepSeek, a Chinese AI startup, is causing significant concern among U.S. tech stocks after showcasing an AI model that competes with leading firms like Nvidia, OpenAI, and Meta. This development, coupled with its cost-effectiveness and high user ratings, has intensified doubts around the U.S. technology sector's dominance and the valuations of companies heavily investing in AI capabilities. After the announcement, global tech stocks dropped, particularly affecting shares of major AI companies and suppliers. This situation underscores a shifting landscape in AI innovation where challengers may quickly gain ground.
Stock Forecasts
NVDA
Negative
The impact of DeepSeek’s innovative capabilities may lead to decreased valuations for established tech companies like Nvidia, especially as market sentiment shifts following this competitive threat.
AVT
Negative
As tech stocks reassess their valuation in light of DeepSeek's emergence, other companies in the AI supportive infrastructure may experience a downturn, particularly those linked to computing and data centers.
Related News
Big Tech earnings, a key Fed meeting, and Trump's first full week in office: What to know this week
Jan 26, 2025, 7:35 AM
After President Trump dominated the market narrative in his first week in office, a Fed meeting, a check on the health of the US economy big tech earnings will also be in focus for investors in the week ahead,
Stock market today: S&P 500 clinches first record close of 2025, Dow pops after Trump takes spotlight at Davos
Jan 23, 2025, 4:03 PM
Stocks steady as investors stay focused on what Trump's intentions are.
Stock market today: Dow rises, Nasdaq slips as Trump takes the spotlight at Davos
Jan 23, 2025, 11:58 AM
Stocks steady as investors stay focused on what Trump's intentions are.