China DeepSeek AI Kills USA Tech, NVDA and Chip Stocks

ByTTT

The sharp selloff in tech stocks, including Nvidia (NVDA), this morning signals speculative capital rapidly retreating from high-growth tech plays and risky assets across the board.

The trigger? Last week’s launch of DeepSeek, a new AI assistant developed by a Chinese startup, has soared to the top of app store download charts. Analysts are buzzing over its performance, noting it rivals ChatGPT while operating on less-advanced hardware. For a deep dive into DeepSeek, click here for the QuickTake.

From a technical analyst’s perspective, the sudden rise of DeepSeek introduces fresh uncertainty for the Nasdaq 100, which has seen a staggering $15 trillion rally since late 2022. This sharp pivot underscores a recurring theme: elevated valuations on speculative technologies can quickly unravel when new entrants disrupt the landscape. Traders should take note—high valuations coupled with breakneck momentum can leave portfolios vulnerable when market sentiment turns.

Recorded January 27, 2025

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