On Monday, global technology stocks experienced a significant downturn following the introduction of AI assistant DeepSeek. This new AI model, which utilizes less data and operates at a fraction of the cost of existing services, quickly surpassed U.S.-based ChatGPT in downloads from Apple’s App Store.
DeepSeek – A Market Disruptor?
The tech-heavy Nasdaq Composite Index declined by 3.1%, with NVIDIA‘s shares plummeting nearly 17%, resulting in a one-day market capitalization loss of USD 593 billion—the largest ever recorded on Wall Street.
Other Major Tech Companies’ Reported Decline:
- Broadcom Inc. drops 17.4%.
- Microsoft falls 2.1%.
- Alphabet, Google’s parent, drops 4.2%.
- Philadelphia Semiconductor Index drops 9.2%.
- Marvell Technology experiences a 19.1% decrease.
The selloff began in Asia, where Japan’s SoftBank Group closed down 8.3%, and continued into Europe, with ASML Holding NV falling 7%. Analysts suggest that DeepSeek’s efficient and low-cost AI model could disrupt the current AI market landscape, a significant driver of tech stocks in recent years.
The silver lining is that despite the market turbulence, some investors view the decline as an opportunity to acquire quality tech stocks at reduced prices, anticipating that the long-term growth potential of AI technology will remain strong.
Stay tuned for more updates regarding sudden disruptions in the AI Market and how these changes may affect us consumers.
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Started his freelancing adventure in 2018 and began doing freelance Audio Engineering work and then started freelance writing a few years later.
Currently he writes for Gadget Pilipinas and Grit.PH.
He is also a musician, foody, gamer, and PC enthusiast.
