• National
  • Politics
  • Valley
  • Opinion
  • Money
  • Sports
  • Culture & Lifestyle

  • National
    • Madhesh Province
    • Lumbini Province
    • Bagmati Province
    • National Security
    • Koshi Province
    • Gandaki Province
    • Karnali Province
    • Sudurpaschim Province
  • Politics
  • Valley
    • Kathmandu
    • Lalitpur
    • Bhaktapur
  • Opinion
    • Columns
    • As it is
    • Letters
    • Editorial
    • Cartoon
  • Money
  • Sports
    • Cricket
    • Football
    • International Sports
  • Culture & Lifestyle
    • Arts
    • Brunch with the Post
    • Movies
    • Life & Style
    • Theater
    • Entertainment
    • Books
    • Fashion
  • Health
  • Food
    • Recipes
  • Travel
  • Investigations
  • Climate & Environment
  • World
  • Science & Technology
  • Interviews
  • Visual Stories
  • Crosswords & Sudoku
  • Horoscope
  • Forex
  • Corrections
  • Letters to the Editor
  • Today's ePaper
Monday, August 11, 2025

Without Fear or FavourUNWIND IN STYLE

21.55°C Kathmandu
Air Quality in Kathmandu: 55
300+Hazardous
0-50Good
51-100Moderate
101-150Unhealty for Sensitive Groups
151-200Unhealthy
201-300Very Unhealthy
Mon, Aug 11, 2025
21.55°C Kathmandu
Air Quality in Kathmandu: 55
  • What's News :

  • China’s dominance in EV market
  • School Education Bill
  • Dengue cases rise
  • Regulation of cooperative sector
  • Gaijatra Pride march

World

DeepSeek sparks AI stock selloff; Nvidia posts record market-cap loss

Global investors are worried the emergence of a low-cost Chinese AI model will threaten the dominance of AI leaders.DeepSeek sparks AI stock selloff; Nvidia posts record market-cap loss
Deepseek logo is seen in this illustration taken January 27, 2025. Reuters
bookmark
  • facebook
  • twitter
  • Whatsapp
  • mail
Reuters
Published at : January 28, 2025
Updated at : January 28, 2025 08:24
New York/london/singapore

Global investors dumped tech stocks on Monday amid concerns over the emergence of a low-cost Chinese artificial intelligence model threatening the dominance of AI leaders like Nvidia. The chipmaker lost $593 billion in market value, marking the largest one-day loss for any company on Wall Street.

Last week, Chinese startup DeepSeek launched a free AI assistant, claiming it uses less data at a fraction of the cost of existing services. By Monday, the assistant had surpassed US rival ChatGPT in downloads from Apple’s app store.

The tech-heavy Nasdaq fell 3.1% on Monday, with Nvidia shares tumbling nearly 17%, registering a record one-day loss in market capitalisation. Broadcom dropped 17.4%, Microsoft 2.1%, and Google parent Alphabet 4.2%.

The Philadelphia semiconductor index fell 9.2%, its biggest drop since March 2020. Marvell Technology recorded the steepest decline, falling 19.1%.

The selloff began in Asia, where Japan’s SoftBank Group fell 8.3%, and continued in Europe, with ASML dropping 7%.

“If DeepSeek proves to be a ‘better mousetrap,’ it could disrupt the entire AI narrative that has driven markets for the past two years,” said Brian Jacobsen, chief economist at Annex Wealth Management. “It could mean less demand for chips, power production, and large-scale data centres.”

The AI hype has fuelled significant capital inflows into equities over the past 18 months, pushing valuations and stock markets to new highs.

As recently as last Wednesday, US AI-related stocks surged after former President Donald Trump announced a $500 billion private-sector plan for AI infrastructure under the Stargate venture. The initiative includes SoftBank, ChatGPT developer OpenAI, and Oracle, whose shares fell 13.8% on Monday.

Trump called DeepSeek a “wakeup call” on Monday, describing it as a potentially positive development.

Deepseek's breakthrough

DeepSeek’s apparent quality and cost-efficiency have shifted perceptions of Chinese AI. Its models, DeepSeek-V3 and DeepSeek-R1, have received widespread praise from Silicon Valley executives.

DeepSeek-V3, launched on January 10, was trained using Nvidia’s lower-capability H800 chips, costing under $6 million. DeepSeek-R1, released last week, is reportedly 20 to 50 times cheaper to use than OpenAI’s model.

Marc Andreessen, a prominent Silicon Valley venture capitalist, referred to DeepSeek’s R1 model as AI’s “Sputnik moment.”

Despite the selloff, some investors see it as an overreaction. Daniel Morgan, senior portfolio manager at Synovus Trust Company, argued that DeepSeek’s AI models, designed for mobile phones and PCs, primarily compete with ChatGPT and Alphabet’s Gemini rather than data centres.

“Nvidia and other chipmakers like AMD and Broadcom remain crucial for the data centre market,” Morgan said.

Nvidia’s shares closed at $118.42 on Monday, down $24.20, bringing its year-to-date losses to 11.8%. However, the stock saw a 2.5% recovery in after-hours trading.

Among other stocks, Vertiv Holdings, which builds data centre infrastructure, slumped 29.9%. Power utility stocks also fell sharply, with Vistra losing 28.3%, Constellation Energy 20.8%, and NRG Energy 13.2%.

Investors flocked to safe-haven assets amid the volatility, with US Treasury 10-year yields falling to 4.53%, and the Japanese yen and Swiss franc gaining against the dollar.


Related News

Israel’s plan for Gaza is a disaster waiting to happen
Europe races to try to influence US position ahead of Trump-Putin talks
Trump urges China to quadruple soybean orders
Rahul Gandhi among opposition leaders detained during protest against India election panel
Israel steps up Gaza City bombing after Netanyahu vow to expand the offensive
Trump vows to evict homeless from Washington, official says National Guard may be deployed

Most Read from World

Chinese government has ‘final say’ in Dalai Lama reincarnation, Tibetan official says
How Pakistan shot down India’s cutting-edge fighter using Chinese gear
Tsunami waves reach Hawaii after huge quake rattles Russia’s Far East
Putin calls Xi, Modi and other foreign leaders ahead of planned meeting with Trump
Powerful quake in Russia’s Far East causes tsunami, Japan and Hawaii order evacuations

Editor's Picks

Students say they are abused under guise of discipline at a Kathmandu school
Exploring ‘forbidden’ hours: Women assert access to public space with midnight walks
Nepali women being sent to Hong Kong on fake Indian IDs
Bitter husband-wife rift throws Nagarik Unmukti Party into chaos
Drought-hit farmers die hooking wires to mains for irrigation

E-PAPER | August 11, 2025

  • Read ePaper Online
ABOUT US
  • About the Post
  • Masthead
  • Editorial Standards & Integrity
  • Workplace Harassment Policy
  • Privacy Policy
READ US
  • Home Delivery
  • ePaper
CONTACT US
  • Write for the Post
  • Letters to the Editor
  • Advertise in the Post
  • Work for the Post
  • Send us a tip
INTERACT WITH US
  • Twitter
  • Facebook
  • Instagram
OUR SISTER PUBLICATIONS
  • eKantipur
  • saptahik
  • Nepal
  • Nari
  • Radio Kantipur
  • Kantipur TV
© 2025 www.kathmandupost.com
  • Privacy Policy
Top