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

C3.ai

27/01/2025 09:26

** Shares of U.S. AI stocks fall in premarket trade after
surging popularity of Chinese discount AI model wobbles
investors' faith in the profitability of AI 
    ** 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 
    ** Dominant AI chipmaker Nvidia  NVDA.O  down 1.7%, AI
server maker Super Micro  SMCI.O  down 8% and Dell  DELL.N  down
7.8%
    ** Broadcom  AVGO.O  down 6.9% while smartphone chipmaker
Qualcomm  QCOM.O  falls 1.8%
    ** Microsoft  MSFT.O  down 3.3%, Alphabet  GOOGL.O  down
3.1%, Meta  META.O  down 3.8%
    ** Chipmaker Marvell Technology  MRVL.O  and Advanced Micro
Devices  AMD.O  fall 6.6% and 3.7%, respectively 
    ** Shares of chip-making equipment companies down; Applied
Materials  AMAT.O  down 5.5%, Lam Research  LRCX.O  down 5.6%
and KLA Corp  KLAC.O  down 5.5%
    ** Palantir Technologies  PLTR.O  falls 5.8% 
    ** Smaller AI stocks C3.ai  AI.N  down 6.1% and BigBear.ai
 BBAI.N  down 4.4%
    ** Energy firms, which plan on powering AI data centers,
fall: Vistra  VST.N  and Constellation Energy  CEG.O  down 8.8%
and 7.3%, respectively
    **  U.S.-listed shares of Arm Holdings  ARM.O  fall 6.6%,
while those of TSMC  TSM.N  fall 7.3% 
    
    

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