While the better part of 2022 through 2024 was dominated by the technology sector, mainly centered around the semiconductor and chip maker names in the market, 2025 is getting off to a rough start for this space. After Chinese company DeepSeek made it the number one downloaded app in the world, claiming it has more computing power with a fraction of the costs claimed by the industry, technology names have taken a beating.
Leading the sell-off is NVIDIA Co. (NASDAQ: NVDA), as its shares sold off by over 14% in a single day, erasing billions in value for its shareholders and the broader Nasdaq-100 index. More than that, it looks like the systemic volatility spikes might keep driving capital out of this stock and initiating a rotation into other – better – risk-to-reward setups in the space.
