Published on: 11:19 p.m., January 27, 2025
The Nasdaq fell after a stock sell-off on Wall Street as Chinese startup DeepSeek AI emerged as a threat to big U.S. tech stocks including Nvidia (NVDA).
The tech-heavy Nasdaq Composite fell 3.2% while the S&P 500 fell 1.8%. Chinese AI DeepSeek has shaken markets by claiming its assistant uses cheaper chips and less data than mainstream models, without compromising performance.
With chip stocks hurt by DeepSeek AI claims, Nvidia shares plunged as much as 17%. Other big stocks like ASML lost 6% and Broadcom and Micron Technology were also hammered.
Microsoft fell more than 2% on concerns about massive investments in AI. Chinese AI Deepseek has threatened Google parent company Alphabet (GOOG, GOOGL) as well as Amazon (AMZN).
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