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

C3.ai

27/01/2025 12:14

(Updates)
    ** Shares of U.S. AI stocks fall in premarket 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 
    ** Dominant AI chipmaker Nvidia  NVDA.O  down 11.8%, AI
server maker Super Micro  SMCI.O  down 8.9% and Dell  DELL.N 
down 7.2%
    ** Broadcom  AVGO.O  down 13%     
    ** Microsoft  MSFT.O  down 5.9%, Alphabet  GOOGL.O  down
3.8%, Meta  META.O  down 4%, and  Oracle  ORCL.N  down 6.4%
    ** Chipmaker Marvell Technology  MRVL.O  and Advanced Micro
Devices  AMD.O  fall 14.8% and 4.6%, respectively 
    ** Shares of chip-making equipment companies down; Applied
Materials  AMAT.O  down 5%, Lam Research  LRCX.O  down 5.4% and
KLA Corp  KLAC.O  down 4.3%
    ** Palantir Technologies  PLTR.O  falls 5.9% 
    ** Smaller AI stocks C3.ai  AI.N  down 6% and BigBear.ai
 BBAI.N  down 5.1%
    ** Energy firms, which plan on powering AI data centers,
fall: Vistra  VST.N  and Constellation Energy  CEG.O  down 12.3%
and 12.7%, respectively
    **  U.S.-listed shares of Arm Holdings  ARM.O  and TSMC
 TSM.N  fall 10% each
    
    

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