Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Economy

AI Stocks Decline Amid DeepSeek’s Emerging AI Model

by Invest Daily Pro
January 29, 2025
in Economy
0
AI Stocks Decline Amid DeepSeek’s Emerging AI Model
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

On January 27, 2025, U.S. stock markets experienced notable fluctuations as investors anticipated the Federal Reserve’s forthcoming interest rate announcement. The S&P 500 index decreased by 1.5%, primarily due to a significant downturn in technology stocks, while the Nasdaq Composite saw a more substantial decline of 3.1%. In contrast, the Dow Jones Industrial Average managed a modest gain of 0.7%. 

A key factor contributing to the tech sector’s decline was the emergence of a new AI application from Chinese startup DeepSeek. This application has surpassed OpenAI’s ChatGPT on Apple’s platform, leading to concerns about the profitability of existing AI market leaders. Consequently, several AI-related stocks faced notable losses:

  • Nvidia Corporation: The semiconductor giant’s stock plummeted nearly 17%, resulting in a record $589 billion loss in market capitalization.  
  • Broadcom Inc.: Experienced a decline of approximately 8.9%.  
  • Microsoft Corporation: Shares fell by around 4%.  
  • Alphabet Inc. (Google’s parent company): Saw a decrease of over 4%.  

DeepSeek’s AI model, developed at a fraction of the cost compared to its U.S. counterparts, has raised concerns about the future profitability of established AI companies. The model was built without top-tier foreign processors restricted by U.S. export curbs, reportedly costing under $6 million to develop. This contrasts with the billions spent by U.S. firms like OpenAI and Meta Platforms. 

Despite the downturn in technology and AI sectors, other industries demonstrated resilience. Notably, American Water Works, AT&T, and HCA Healthcare reported gains, buoyed by positive financial reports and strategic initiatives.

Investors are now closely monitoring the Federal Reserve’s forthcoming decisions, as well as developments in the AI industry, to assess potential impacts on the broader market.

The post AI Stocks Decline Amid DeepSeek’s Emerging AI Model appeared first on FinanceBrokerage.

ShareTweetPin

Related Posts

Trump’s Fed Criticism Sparks Investor Concerns
Economy

Trump’s Fed Criticism Sparks Investor Concerns

April 23, 2025
Oil Prices Rebound After Trump’s Criticism of Powell
Economy

Oil Prices Rebound After Trump’s Criticism of Powell

April 23, 2025
Gold Price Surge Hits $3,385 Amid Trade Tensions
Economy

Gold Price Surge Hits $3,385 Amid Trade Tensions

April 22, 2025
BNB Price Surge Leads Crypto Gains as Bitcoin Climbs
Economy

BNB Price Surge Leads Crypto Gains as Bitcoin Climbs

April 22, 2025
Q1 2025 Global PC Shipments Surge on Tariff Fears
Economy

Q1 2025 Global PC Shipments Surge on Tariff Fears

April 10, 2025
Bitcoin Price Dip Below $80K Amid Trade Tariff Fears
Economy

Bitcoin Price Dip Below $80K Amid Trade Tariff Fears

April 10, 2025
Next Post
Comprehensive Guide to Money Market Accounts

Comprehensive Guide to Money Market Accounts

Recommended

Stuff to Do (09/20/24)

Stuff to Do (09/20/24)

September 19, 2024
How to Use Korean Skincare for Winter-Proof Skin in the UK’s Cold Months

How to Use Korean Skincare for Winter-Proof Skin in the UK’s Cold Months

November 13, 2024
Record Revenues at Canada Gambling Firms 2024 in Comparison to UK

Record Revenues at Canada Gambling Firms 2024 in Comparison to UK

November 28, 2024
6 Steps to Guide you How to crochet a flower

6 Steps to Guide you How to crochet a flower

August 25, 2024
Are financial advisers in demand?

Are financial advisers in demand?

August 28, 2024
27 new PPP projects added to gov’t pipeline

27 new PPP projects added to gov’t pipeline

August 12, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Terms & Conditions
    • Thank you

    Copyright © 2024 investdailypro.com | All Rights Reserved