January 28, 2025

On January 27, 2025, the emergence of DeepSeek, a Chinese artificial intelligence startup, significantly impacted global stock markets. DeepSeek's rapid ascent, marked by its AI application becoming the most downloaded free app in multiple countries, challenged the dominance of established tech giants. Notably, DeepSeek's AI operates efficiently on less powerful and more affordable chips, posing a direct threat to companies like Nvidia, which experienced a historic market value loss of $589 billion.

Cinco Días

The broader market felt the effects as well. The Nasdaq Composite Index recorded its worst day in over a month, driven by investor concerns over DeepSeek's potential to disrupt the tech landscape.

MarketWatch

Companies heavily invested in AI, such as Super Micro, Vertiv Holdings, and Palantir Technologies, saw substantial stock declines. Super Micro's shares dropped 8.2%, influenced by both the DeepSeek development and internal challenges like an auditor resignation and delayed earnings reports. Vertiv Holdings experienced a 22% decline, while Palantir Technologies also faced significant losses.

Barron's

These developments underscore the profound impact that advancements in AI can have on global financial markets, especially when new entrants challenge established industry leaders.