Australian AI-focused stocks tumble after China's DeepSake hits Wall Street

Goodman

28/01/2025 02:48

** AI-focused stocks in Australia dropped to multi-week lows
after Chinese startup DeepSeek's low-cost AI model sent tech
stocks on Wall Street tumbling
    ** Nasdaq  .IXIC  fell 3% overnight to log its biggest
one-day percentage drop since Dec 18  .N 
    ** Goodman Group  GMG.AX , Australia's biggest-listed
property developer with a significant exposure to data centres,
falls 8.1% to its lowest since mid-September last year
    ** GMG is the fourth-biggest loser in the ASX200 benchmark
index  .AXJO 
    ** Brainchip  BRN.AX , which makes neuromorphic processors,
slipped 15.4%, while data processing firm Appen  APX.AX  was
down 3.7%
    ** Data centre developers and operators NEXTDC  NXT.AX  and
DigiCo Infra REIT  DGT.AX  fall around 6% and 11%, respectively
    ** Citi analyst Siraj Ahmed does not expect DeepSake to
impact near-term contracts/demand for NXT, and predicts
hyperscalers to continue to deploy capacity
    ** Tech sub-index  .AXIJ  is down 1%, vs a largely flat AXJO
    

 (Reporting by Kumar Tanishk in Bengaluru)
 ((Tanishk.Kumar@thomsonreuters.com;))