Market Update: DeepSeek Threatens US AI Dominance, Nvidia Stock Takes Hit
Stock markets experienced a sell-off Monday, with tech-heavy Nasdaq Composite set to open lower due to concerns over China’s DeepSeek AI platform. DeepSeek’s cost-effective and efficient model has raised concerns about US dominance in the AI field.
Key Stocks Affected
- Nvidia: The leading maker of AI chips, Nvidia, dropped 11% due to concerns about reduced demand for its products.
- ASML: The Dutch maker of chip-manufacturing machines, ASML, also fell 6.7% due to DeepSeek’s advancements.
- Broadcom: The semiconductor and software company Broadcom was down 13%, reflecting the broader impact on the AI sector.
- Vertiv Holdings: The maker of cooling equipment for data centers plunged 16%, as DeepSeek’s model could reduce the need for large data centers.
- GE Vernova: The power-generation technology company was down 14% due to similar concerns about reduced energy demand.
Other Notable Moves
- Oracle: Oracle’s shares fell 8% after reports of a potential investment in TikTok.
- United States Steel: The company faced a potential proxy battle and a decline in its stock price.
- AT&T: The telecommunication giant reported better-than-expected earnings and saw its stock rise.
- SoFi Technologies: The fintech company’s stock fell 11% despite beating earnings estimates.
- Venture Global: The exporter of liquefied natural gas saw its stock fall below its IPO price.
- Tesla: The electric vehicle maker is set to report earnings and is expected to see strong margins.
Other Upcoming Earnings Reports
Several other major companies are set to report earnings in the coming weeks, including Apple, Microsoft, Meta Platforms, Boeing, Lockheed Martin, Intel, Exxon Mobil, Chevron, Visa, Mastercard, Starbucks, General Motors, Royal Caribbean, Caterpillar, Comcast, United Parcel Service, ASML Holding, T-Mobile, International Business Machines, AbbVie, ServiceNow, Altria, SAP, and RTX.
Market Outlook
The market remains volatile, with investors closely monitoring the impact of DeepSeek and other developments in the AI sector. Further volatility is expected as companies continue to report earnings and the Federal Reserve prepares to announce its interest rate decision.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Consult with a 1 financial advisor before making any investment decisions.
