Nvidia, Microsoft, and Alphabet were among the market's top losers on Monday as the rise of DeepSeek rattled investors.
The emergence of China-based AI app DeepSeek sent shares plummeting on Monday for many U.S. tech giants, including chipmaker Nvidia and AI-backer Microsoft.
Nvidia, whose chips are the top choice for powering AI applications, dropped 11.7%, while a gauge of semiconductor stocks dropped 6.5%.
Nvidia stock dropped more than 11% as a social media panic over the potential rise of a Chinese AI model upended chip stocks and the broader AI investment thesis early Monday.
Investors are worried about the rapid success of China's DeepSeek. It has developed low-cost AI models that don't require the most ad
Nvidia, Broadcom, and Taiwan Semiconductor were among the market's top losers on Monday as the rise of DeepSeek rattled investors.
Investors dumped technology stocks in premarket trading Monday, sending U.S. indexes sharply lower after Chinese artificial intelligence startup DeepSeek demonstrated a chatbot that it says rivals the top versions from OpenAI and Google for a fraction of the cost.
The Nasdaq could face market-cap losses of nearly $1 trillion if premarket declines hold into the close of trading.
The rout extended well beyond traditional tech names. Siemens Energy, which supplies electrical hardware for AI infrastructure, plunged 22 per cent. Schneider Electric, a French maker of electrical power products that has invested heavily in services for data centres, fell 9.2 per cent.