Big Tech
DeepSeek Risks Bite Investors Who Clung to Big Tech’s Dominance
A potential repricing of downside risks into the crowded AI trade is seeing a substantial bout of volatility reintroduced.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
What do you get when an established market narrative is suddenly flipped upside down, with stretched investor sentiment and positioning, right before one of the busiest earnings weeks of the season? About a trillion dollars of market value erased.
Concerns about Chinese AI chatbot company DeepSeek’s challenge to AI spending plans sent US tech giants reeling. The Nasdaq 100 index sank more than 3%, and Nvidia Corp. was headed toward the worst market cap loss for a single stock in market history.