AI Stocks Tumble as Chinese Startup Unveils Low-Cost, Less-Advanced Model
Key Points:
* Numerous artificial intelligence (AI) stocks, including Nvidia (NVDA), plunge in premarket trading.
* Chinese startup DeepSeek releases an innovative AI model on less-advanced chips at a lower cost than US rivals.
* Investors question tech share valuations and Big Tech's AI spending spree.
* Nasdaq futures decline, and major tech companies Meta Platforms (META) and Vistra (VST) see significant losses.
* Citi analysts maintain buy rating on Nvidia, citing continued demand for advanced chips from AI firms.
* US advantage in accessing cutting-edge chips remains a key factor in the AI landscape.