Nasdaq takes a beating sparked by Chinese DeepSeek AI
Posted By RichC on January 27, 2025
As commented in the WSJ, “DeepSeek has sparked a deep freakout.“
Stock Market Today: Nvidia Stock Sinks in AI Rout Sparked by China’s DeepSeek
The Chinese artificial-intelligence upstart has trained high-performing artificial intelligence models cheaply—and without the most advanced gear provided by Nvidia and others. That has pulled the rug from under global companies benefiting from AI, including chip makers, infrastructure suppliers and power stocks, as investors question the outlook for AI spending.
Nvidia tumbled 17%, wiping out nearly $600 billion from the company’s market cap and tarnishing one of the stock market’s brightest stars of recent months. The tech-heavy Nasdaq Composite sank 3.1%. Microsoft and Google parent Alphabet both fell both more than 2.5%. Bonds climbed as investors sought safety.
The rethink came as a busy week for earnings got underway—with some of the biggest spenders on AI, such as Microsoft and Meta Platforms, among the companies due to update investors.
y Nasdaq Composite falls more than 3%
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