Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) fell 13% in the morning session as stocks heavily tied to the AI market took a hit after Chinese artificial intelligence startup DeepSeek released a new large language model (DeepSeek-R1) that ranks competitively on key global benchmarks (coding competitions, math evaluations), uses less advanced semiconductor chips, costs significantly less to build (at $5.5 million - excluding non-compute costs), and has already achieved strong
Shares of fabless chip and software maker Broadcom (NASDAQ:AVGO) fell 13.6% in the morning session as stocks heavily tied to the AI market took a hit after Chinese artificial intelligence startup DeepSeek released a new large language model (DeepSeek-R1) that ranks competitively on key global benchmarks (coding competitions, math evaluations), uses less advanced semiconductor chips, costs significantly less to build (at $5.5 million - excluding non-compute costs), and has already achieved strong
Shares of tech giant Microsoft (NASDAQ:MSFT) fell 7.1% in the pre-market session as stocks heavily tied to the AI market took a hit after Chinese artificial intelligence startup DeepSeek released a new large language model (DeepSeek-R1) that ranks competitively on key global benchmarks (coding competitions, math evaluations), uses less advanced semiconductor chips, costs significantly less to build (at $5.5 million - excluding non-compute costs), and has already achieved strong adoption after to
Nvidia (NVDA) is on track to record its biggest drop yet after Chinese artificial intelligence (AI) startup DeepSeek sparked a tech sell-off. DeepSeek's newest AI model raised concerns about US companies' ability to keep up in the AI race. The sell-off sends names like Broadcom (AVGO) and Marvell Technology (MRVL) tumbling while other AI plays, such as Oklo (OKLO) and Constellation Energy (CEG) see double-digit declines. The news comes just ahead of Big Tech earnings, with Microsoft (MSFT), Meta (META), and Tesla (TSLA) reporting on Wednesday and Apple (AAPL) announcing on Thursday. Worries about AI competition raise questions about Big Tech earnings meeting Wall Street's expectations. Seana Smith and Brad Smith take a closer look at the market action ahead of the opening bell on Morning Brief. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Naomi Buchanan.
US stocks (^DJI, ^IXIC, ^GSPC) are selling off, with the Nasdaq Composite sinking by more than 3% at the session start as a result of tech stocks reacting to DeepSeek's AI model unveil. Morning Brief host Brad Smith and Yahoo Finance markets and data editor Jared Blikre monitor this morning's market losses as Big Tech players sell off. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Luke Carberry Mogan.