The Chinese DeepSeek AI model triggered a market sell-off, wiping a trillion dollars off the Nasdaq. Nvidia bore the brunt of the losses, but recovered half by Tuesday. Despite the volatility, US AI champions are faring well. The mining sector, however, continues to lag behind, highlighting the disparity in investor perception between traditional industries and booming tech trends.
The cheap and cheerful Chinese DeepSeek AI model sent shockwaves through the market on Monday, wiping a trillion dollars off the Nasdaq index. Tech giant Nvidia , a darling of the industry, bore the brunt of the losses, seeing its market cap plummet by $600 billion at one point. While it seemed like this week might bring a much-needed correction to the AI and Nvidia bubble, the chipmaker managed to recover half of Monday's losses by Tuesday.
It appears that US AI champions are not in deep trouble after all. Even after the setback, investors who bought Nvidia a year ago can still celebrate 111% gains. Those who saw the AI boom coming three years ago are enjoying a staggering 465% return. The stock's value has now comfortably rebounded to over $3 trillion.Meanwhile, the world's most valuable mining companies, with a combined market capitalization of $1.28 trillion, have experienced a $126 billion decline this year after a disappointing final quarter. So far in 2025, the biggest mining stocks, except for a handful of gold counters, have either moved sideways or retreated further. This isn't the first time that this publication has highlighted the disparity in how investors perceive the industrial economy compared to any stock with even a hint of the latest tech trend. A visual representation of just one AI stock surrounded by mining companies resembles a solar system, as one reader commented on a previous iteration. Comparing miners to the 'mag-7' (the seven most valuable tech stocks) is a stark reminder of the gap. However, there are numerous narratives within the mining industry that can be tied to AI or the next emerging trend, likely humanoid robots. Uranium, for instance, has seen a resurgence in interest due to its application in nuclear energy, a sector benefiting from the shift towards clean energy. But once again, mining seems to be more involved in the downside of technological breakthroughs. When metals and minerals are swept up in the excitement, the boost usually lasts for only a half-cycle. Studies conducted over five decades and funded by the Chinese show that the iron ore exporter also has uranium, lithium, cobalt, manganese, and neodymium deposits. Codelco plans a 25% cut in indirect emissions by 2030, Codelco plans to reduce its so-called Scope 3 emissions, which are indirect emissions released by its suppliers and the most difficult to minimize
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