Global Tech Selloff Impacts Power Providers
A sharp decline in global technology stocks is reverberating beyond semiconductors and major tech companies to those powering the sector.
Energy Sector Hit Hard
Independent power producers were the worst-performing stocks on the S&P 500 on Monday, following concerns raised by an AI model developed by Chinese startup DeepSeek. Vistra Corp., GE Vernova, and Constellation Energy all experienced significant declines.
Siemens, Munters Affected in Europe
European energy and equipment companies also saw losses, with Siemens Energy dropping by 22% and Munters Group by 14%.
Nuclear Firm Oklo Impacted
Oklo Inc., a nuclear fission reactor company backed by OpenAI, declined by 25% despite a recent surge.
Sector Valuations Questioned
DeepSeek's AI model has raised concerns over the elevated valuations in the tech sector, including semiconductor and chip equipment companies.
Analysts Remain Optimistic
Despite the selloff, analysts like Omid Vaziri of Bloomberg Intelligence believe demand growth for energy providers like Siemens Energy, Schneider Electric, and Legrand is unlikely to be halted. They see DeepSeek's models as potential catalysts for AI adoption.