DeepSeek Puts Tech Stocks on Track for $1 Trillion Wipeout
Posted: Jan 27, 2025
- Chinese AI startup DeepSeek's cost-effective AI model running on less-advanced chips raised concerns about the dominance of American tech companies
- Shares of $NVDA (Nvidia Corp.) fell 10% in premarket trading
- Nasdaq 100 futures and S&P 500 contracts dropped significantly
- European tech stocks, particularly ASML Holding NV, also experienced losses
- The Cboe Volatility Index (VIX) spiked higher
- Potential market capitalization wipeout of roughly $1 trillion for Nasdaq and Europe's tech sub-index
- Increased trading activity for Nasdaq 100 futures
- Siemens Energy AG, a European AI winner, saw a steep 20% decline- DeepSeek, a Chinese AI startup, caused global tech stocks to drop
- Questions raised about America's tech dominance
- Buzz around DeepSeek's cost-effective AI model cast doubts on valuations of companies like Nvidia ($NVDA)
- Nvidia stock slid 10% in premarket trading on Monday
What do people on Reddit think?
🚨 Reddit sentiment: mixed/negative - The comments reflect a mix of humor and negative sentiment about the market situation, with some users indicating dissatisfaction or concern about the market's reaction. The anticipation of humor might indicate slight positive engagement, but the overall sentiment leans negative. Summarized comments: - The post has garnered attention for comedic material on WallStreetBets - Mention of Sam Altman and a hypothetical $1 trillion in the negative direction - A reference to various past political figures humorously - Discussion about market overreaction after the topic - Mention that DeepSeek's action is spoiling the fun for billionaires overpricing - Anticipation of related memes Stock tickers discussed: None
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