AI-linked stocks slump after China upgrades low-cost, low-power AI model

C3.ai

27/01/2025 14:54

(Updates)
    ** Shares of U.S. AI stocks fall in morning trade after
surging popularity of Chinese discount AI model wobbles
investors' faith in the technology's profitability 
    ** Startup DeepSeek rolled out a free assistant it says uses
lower-cost chips and less data, sparking worries about profits
of rivals and the need for costly tech 
    ** Nvidia  NVDA.O  hits near 4-month low, down 11.5%,  AI
server maker Super Micro  SMCI.O  down 8.3% and Dell  DELL.N 
hits over 4-month low, down 7%
    ** Broadcom  AVGO.O  hits over 1-month low, down 12%    
    ** Microsoft  MSFT.O  down 3.6%, Alphabet  GOOGL.O  down
3.5%, Meta  META.O  down 2.5%, and  Oracle  ORCL.N  down 8.6%
    ** Chipmaker Marvell Technology  MRVL.O  and Advanced Micro
Devices  AMD.O  falls to over 1-month low, down 14.9% and 4.6%,
respectively 
    ** Shares of chip-making equipment companies down; Applied
Materials  AMAT.O  down 6%, Lam Research  LRCX.O  down 5.7% and
KLA Corp  KLAC.O  down 5.3%
    ** Palantir Technologies  PLTR.O  falls 5.1% 
    ** Smaller AI stocks C3.ai  AI.N  down 5% and BigBear.ai
 BBAI.N  down 6.9%
    ** Vertiv Holdings  VRT.N , which designs and builds data
center infrastructure falls 22%
    ** Energy firms, which plan on powering AI data centers,
fall: Vistra  VST.N  and Constellation Energy  CEG.O  down 19.5%
and 16%, respectively
    **  U.S.-listed shares of Arm Holdings  ARM.O  down 8.3% and
TSMC  TSM.N  fall 9.3% 
    ** Philadelphia SE semiconductor index hits two-week low,
down 6.4%
    
    

 (Reporting by Pranav Kashyap in Bengaluru)
 ((Pranav.Kashyap@thomsonreuters.com; +919886482111;))