China’s DeepSeek AI App Hits U.S. Tech Stocks Hard

China’s DeepSeek AI app has sent shockwaves through the global technology sector, particularly in the United States. The advanced AI chatbot has surged to the top of the Apple Store’s download charts, challenging the dominance of American AI giants. The app’s innovative design, lower costs, and energy efficiency have set it apart, making it a game-changer in the competitive world of artificial intelligence.

The market reaction was swift and severe. U.S. tech stocks experienced a dramatic sell-off, with the Nasdaq Composite dropping 4.4% in pre-market trading. Leading the decline were Broadcom, Nvidia, and AMD, which saw their shares tumble by 13%, 11%, and 6.2%, respectively. This led to a staggering $1.2 trillion loss in market value.

Marc Chandler, an analyst at Bannockburn Global Forex, commented, “DeepSeek has taken the world by storm. It’s faster, cheaper, and more efficient than its competitors, showcasing China’s ability to innovate beyond replication.”

This development comes as U.S. technology companies have heavily invested in artificial intelligence, striving to maintain their competitive edge. The success of DeepSeek highlights China’s growing influence in this sector and raises concerns about the future of American dominance in AI innovation. For more updates check our Youtube channel.

In Europe, markets also felt the impact, with major indices like the FTSE 100 and DAX 40 seeing declines. Analysts predict further volatility as investors reassess the tech industry’s trajectory.

Despite the setbacks for U.S. firms, the launch of DeepSeek underscores the increasing global competition in artificial intelligence. As China continues to push the boundaries of AI capabilities, the pressure on U.S. tech companies to innovate will only intensify.

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