DeepSeek buzz puts tech stocks on track for $1 trillion wipeout.
Jerry
Chinese artificial intelligence startup DeepSeek rocked global technology stocks Monday, raising questions over America’s technological dominance.
Buzz grew over the weekend about DeepSeek’s latest AI model being cost-effective while running on less-advanced chips, casting doubt on the validity of the rich valuations for companies like Nvidia Corp., which has led the global AI stock boom as its chips have been seen as essential to the technology. Shares of the Santa Clara, California-based firm slid 10% in premarket trading on Monday.
Nasdaq 100 futures tumbled 3.4%, while contracts on the S&P 500 fell 2% as of 5 a.m. in New York. In Europe, tech stocks led market losses, with shares of chip equipment maker ASML Holding NV down 11%. The Cboe Volatility Index, known as the VIX, spiked higher. The Nasdaq 100 and Europe’s Stoxx 600 technology sub-index were together set for a market capitalization wipeout of roughly $1 trillion, if the losses hold.
Source: FORTUNE
