DeepSeek is a wake-up call for US, says Trump
DeepSeek is a wake-up call for US, says Trump
Share:
Nvidia lead a rebound on US stock markets a day after suffering record losses following the emergence of a low-cost Chinese artificial intelligence model. Wall Street’s tech-focused Nasdaq Composite dropped by more than 3pc on Monday amid concerns that heavy-spending on AI by Silicon Valley companies that has been championed by Donald Trump will fail to yield profits for investors.
US chipmaker Nvidia, the darling of the AI boom, suffered the largest stock market slump in history on Monday as its shares tanked by 18pc, wiping nearly $600bn (£480bn) off its valuation. It came after the Chinese start-up DeekSeek launched AI models that it says can compete with industry-leading models in the United States at a fraction of the cost.
Nvidia rose 1.7pc in early trading, although it swung between gains and losses. The tech-heavy Nasdaq Composite rose by 0.6pc. Analysts at Morgan Stanley trimmed its targets for several AI-related companies but warned it is “unclear whether DeepSeek is a clever look-alike or true competitor”.
Citi analyst Christopher Danely said that while it appears AI spending growth is not slowing down, “eventually some sort of ROI (return on investment) will need to be seen or spending could rapidly slow”. Read the latest updates below. Technology stocks regained some ground with chipmaker Nvidia up about 2.5pc in early trading, a day after it suffered the biggest one-day market capitalisation loss in history.
