The declines suffered by the broader technology sector — which, besides Nvidia’s by now infamous US$600 billion hit — the single largest one-day market value slump in history — is shared to a smaller extent by other big tech names, including Microsoft, Alphabet and ASML.
DeepSeek’s emergence from stealth mode on US President Donald Trump’s inauguration day has sent shockwaves through the AI sector. The revelation that the China-based platform is a formidable rival to the once-dominant US AI giants wiped out around US$1 trillion ($1.36 trillion) in market value.
However, fund managers and analysts do not suggest that DeepSeek is going to be a true gamechanger and that investors should abandon their AI bets. Manuel Villegas, digital assets analyst at Julius Baer, is maintaining his “constructive” view on cloud computing and AI for now. “DeepSeek’s impact has yet to be tested on congested networks, and social media’s doomsday scenarios on hardware seem far-fetched,” he says.
