After a horrendous start to the last week of January 2025, technology stocks across the United States stock market saw a massive sell-off. The reason behind this behavior is the bold claim made by Chinese technology company DeepSeek, which allegedly was built quicker and more powerful than its American competitor ChatGPT. This is why there was some turmoil in the markets.
Capital expenditure budgets were much higher than what DeepSeek claims, meaning that demand for chips and semiconductors might be overstated today. This is why shares of NVIDIA Co. (NASDAQ: NVDA) led the way lower in the market, declining by over 17% in a single day. However, other stocks related to artificial intelligence also went down by association.
