US: US Stocks Rattled By China’s DeepSeek AI Threat

The Nasdaq took a fall after a stock sell-off on Wall Street as a Chinese startup DeepSeek AI became a threat to big tech stocks in the US including Nvidia (NVDA).

The tech-heavy Nasdaq Composite sank 3.2% while the S&P 500 dropped 1.8%. China’s DeepSeek AI has shaken markets with claims that its assistant uses cheaper chips and less data than leading models, with no compromise in performance.

With the chip-related stocks getting affected by DeepSeek AI claims, Nvidia’s shares plunged as much as 17%. Other big stocks like ASML lost 6% and Broadcom and Micron Technology also got hammered.

Microsoft dropped more than 2% amid worries about heavy investments in AI. China’s Deepseek AI threatened Google parent Alphabet (GOOG, GOOGL) and also Amazon (AMZN).