澳洲幸运5官方开奖结果体彩网

Here Are the Stock Market Winners and Losers from the DeepSeek AI Upheaval

Television graphics are seen in the window of Nasdaq headquarters in Times Square, as Nasdaq fell nearly 4 percent this morning on January 27, 2025 in New York City.

Bryan R. Smith / AFP / Getty Images

Key Takeaways

  • AI stocks had a volatile week as Wall Street reckoned with the implications of a sophisticated, cost-efficient AI model from Chinese start-up DeepSeek.
  • Semiconductor stocks such as Nvidia and Broadcom sold off on Monday as investors worried DeepSeek's efficiencies would temper enthusiasm for AI infrastructure spending. High-flying networking and power stocks also tumbled.
  • Software stocks advanced on expectations that their margins and demand for their AI products will improve as AI becomes less expensive to run.

AI stocks were this past week when Wall Street took notice of a high-performance, shockingly efficient open-source AI model from Chinese start-up DeepSeek

The high-performance model, which DeepSeek said was trained in a matter of months for about $6 million, sparked concern that useful AI may not require the most powerful and most expensive hardware. It also threatened to undercut the investment t♋hesis that has so far prevailed among U.S. tech companies: spend aggressively to build computing capacity and develop the most powerful models. 

A sell-off of semiconductor and computer networking stocks on Monday was followed🅠 by a modest rebound, but DeepSeek’s damage was still evident when markets closed Friday. Below, we look at so𒁃me of the winners and losers of the reckoning of the past week. 

Nvidia

Nvidia (NVDA), the undisputed winner oꦉf the AI craze, was the undisputed loser of the DeepSeek panic. 

Shares tumbled 17% on Monday, their 澳洲幸运5官方开奖结果体彩网:biggest one-day drop since March 20💦20 when it became evident Covid-19 would upend daily life around the world. The chip giant’s market cap, which stood at $3.6 trillion before last week, shrank by nearly $590 billion, the largest l🧜oss of market value for a single company on record. 

DeepSeek, some investors thought, could force U.S. tech giants to refocus their efforts on making more nimble, efficient AI models, and subsequently reduce their spending on Nvidia’s most sophisticated chips. Analysts were generally skeptical of that narrative. Bank of America analysts argued 澳洲幸运5官方开奖结果体彩网:ꦑDeepSeek could be “AI’🅠s Sputnik moment” that fuels even more AI investment beneficial to Nvidia. 

But some saw reason to be wary. Morgan Stanley analysts wrote that “the stock market reaction is probably more important than the cause,” and warned DeepSeek’s success could temper AI spending enthusiasm and compel the Trump administration to ratchet up semiconductor export controls. 

Nvidia stock, despite re😼covering some of Monday’s losses, finished the week 16% lower. 

Meta Platforms

Shares of Meta (META) climbed 6.4% last week, making it the best performer among the 澳洲幸运5官方开奖结果体彩网:Magnificent Seven

The stock was bolstered by DeepSeek on Monday when it dodged the AI sell-off and rose about 2%. Investors felt vindicated by the success of DeepSeek’s model, which—like Meta’s large language model, Llama—is 澳洲幸运5官方开奖结果体彩网:open-source

CEO Mark Zuckerberg, speaking during the company’s earnings call on Wednesday, said DeepSeek had “only strengthened our conviction this is the right thing for us to be focused on,” referring to open-source AI, as opposed to proprietary models.

Meta’s stock also got a boost from a strong quarterly earnings report. Meta easily 澳洲幸运5官方开奖结果体彩网:surpassed Wall Street’s expectat⛦ions on both the top and bottom lines, and executives in their comments to analysts 澳洲幸运5官方开奖结果体彩网:possibly allayed some jitters about the DeepSeek threat.

ServiceNow

Shares of enterprise software company ServiceNow (NOW) finished thei🦩r rollercoaster ride of a week about 1% lower.

The stock climbed 4% in the first two sessions of the week, boosted by optimism that DeepSeek’s cost-efficient model could hasten the development of more affordable AI models. Analysts and investors were quick to note software companies 澳洲幸运5官方开奖结果体彩网:would immediately benefit from lower computing costs. More efficient AI could not only widen their 🉐margins, it could also enable them to develop and run more models for a wider variety of uses, driving greater consumer and c🍒ommercial demand. 

ServiceNow shares were trading near a record high when the company on Wednesday reported disappointing quarterly results, leading its stock to plummet 11%. CEO Bill McDermott’s optimism about the company’s AI prospects couldn’t counter Wall Street’s disappointment that subscription revenue 澳洲幸运5官方开奖结果体彩网:grew slower than expected and was forecast to grow even slower in the current quarter.

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  1. Bank of Aಌmerica. “US Semiconductors: Deep꧋Seek: more evolutionary than revolutionary, focus on AI capex.”

  2. Morgan Stanley. “Semic𝕴onductors | North America: Latest thoughts on Deepseek and Other Concernsꦍ; Why We Remain Positive on AI Semis.”

  3. Meta. “.”

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