DeepSeek Shakes Up Tech Stocks, Sparks Concerns Over U.S. AI Leadership
Markets are reeling after the emergence of DeepSeek, a Chinese AI startup whose discount AI model is shaking confidence in U.S. tech dominance. Nasdaq 100 futures fell by 2.6%, while S&P 500 futures slipped 1.4% early Monday. Key players like Nvidia, Tesla, Amazon, and Meta saw notable declines, with Nvidia's Frankfurt-listed shares dropping about 7%.
DeepSeek’s AI assistant, now the top-rated free app on Apple’s U.S. App Store, uses cost-effective hardware, including Nvidia’s H800 chips, to compete with big-name AI tools like ChatGPT. This development has raised doubts about the long-term profitability of AI-driven investments, especially in high-tech chips and data centers.
SoftBank, a prominent AI investor, fell over 8%, and chip giant Tokyo Electron declined 5%. European tech stocks, including ASML, are also bracing for potential pressure as questions arise about the capital expenditure strategies of major tech firms.
While DeepSeek’s rise sparks debate, some analysts believe it’s too early to determine if U.S. tech's cutting-edge status is genuinely at risk. Still, the shockwaves have traders reevaluating their bets on AI.
Markets are reeling after the emergence of DeepSeek, a Chinese AI startup whose discount AI model is shaking confidence in U.S. tech dominance. Nasdaq 100 futures fell by 2.6%, while S&P 500 futures slipped 1.4% early Monday. Key players like Nvidia, Tesla, Amazon, and Meta saw notable declines, with Nvidia's Frankfurt-listed shares dropping about 7%.
DeepSeek’s AI assistant, now the top-rated free app on Apple’s U.S. App Store, uses cost-effective hardware, including Nvidia’s H800 chips, to compete with big-name AI tools like ChatGPT. This development has raised doubts about the long-term profitability of AI-driven investments, especially in high-tech chips and data centers.
SoftBank, a prominent AI investor, fell over 8%, and chip giant Tokyo Electron declined 5%. European tech stocks, including ASML, are also bracing for potential pressure as questions arise about the capital expenditure strategies of major tech firms.
While DeepSeek’s rise sparks debate, some analysts believe it’s too early to determine if U.S. tech's cutting-edge status is genuinely at risk. Still, the shockwaves have traders reevaluating their bets on AI.