US tech shares recover some losses from steep DeepSeek selloff

Published On Jan 28, 2025, 12:24 PM

US tech shares have begun to recover from a significant selloff, which occurred after the introduction of a low-cost Chinese AI model by DeepSeek, threatening the dominance of American companies like Nvidia. Nvidia's stock initially fell about 17% but has since seen a rise of over 6%. Other tech companies also experienced fluctuations, but many analysts believe that competition from DeepSeek will not eliminate the demand for advanced chips and models. Analysts suggest a cautious approach to investing in AI-related stocks, emphasizing the need to assess individual company exposure rather than reacting broadly to market movements.

Stock Forecasts

NVDA

Positive

Nvidia's stock has shown resilience after a major selloff, due to a recovery in investor confidence in tech and the ongoing demand for advanced semiconductors despite increased competition.

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A new A.I. model, released by a scrappy Chinese upstart, has rocked Silicon Valley and upended several fundamental assumptions about A.I. progress.

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China’s AI startup DeepSeek triggered a tech sell-off today as investors panicked over fears of a cheaper open-source model.