A new AI-powered chat system called DeepSeek, developed by Chinese developers, threatens the dominance of companies like NVIDIA with its superior computing power at a fraction of the cost. This disruption has triggered market volatility, leading to a sell-off in technology stocks. Investors are analyzing the situation, considering the implications of DeepSeek's claims and the potential shift in the semiconductor industry.
When market volatility compresses, as it did over the past five days, seasoned investors and traders should consider what could happen next to bring about a spike in volatility, such as unusual trading volume or options trading activity. This week’s volatile event, coming in to end the first month of 2025, comes all the way across the world from Asia’s powerhouse.
are down over 10% to start the new trading week, bringing other stocks and indexes down with it as it became the biggest holding in some portfolios across the board. This price action might mean that the estimates for costs and capital intensity might have gotten away from these giant names. Looking at the recent producer price index and manufacturing PMI reports, investors would realize that demand for semiconductors and chips had taken a backseat.
This is where the risk-to-reward setup becomes important between these two names, as Advanced Micro Devices trades as low as 54% of its 52-week high, while NVIDIA stock is at a much higher 83% of its 52-week high. This way, investors could buy the semiconductor dip through the best setups today.
TECHNOLOGY AI MARKETVOLATILITY SEMICONDUCTORS CHINA
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
DeepSeek's Rise Sparks Concerns as Chinese AI Challenges US DominanceDeepSeek, a year-old Chinese AI company, has taken the top spot in Apple's App Store, pushing OpenAI's ChatGPT to second place. This success raises concerns about China's growing influence in AI and its potential impact on US national security.
Read more »
DeepSeek vs. ChatGPT: Hands On With DeepSeek’s R1 ChatbotDeekSeek’s chatbot with the R1 model is a stunning release from the Chinese startup. While it’s an innovation in training efficiency, hallucinations still run rampant.
Read more »
China: AI’s Sputnik moment? A short Q and A on DeepSeekOn 20 January the Chinese start-up DeepSeek released its AI model DeepSeek-R1.
Read more »
DeepSeek's Open-Source AI Model Challenges OpenAI and Redefines Global InnovationThe US export controls on advanced semiconductors, intended to slow China's AI progress, have unintentionally spurred innovation. DeepSeek, a Chinese AI company, has released its open-source DeepSeek-R1 model, which rivals OpenAI's performance and demonstrates China's commitment to transparency and global collaboration in AI development.
Read more »
Chinese AI Startup DeepSeek Challenges US Dominance with Open-Source Model R1DeepSeek, a Chinese AI company, has developed an open-source large language model (LLM) called R1 that has quickly gained recognition for its impressive performance and cost-effectiveness. R1's rapid ascent in the AI rankings has sparked discussions about the competitive landscape in the field and the importance of open-source AI.
Read more »
Chinese AI Startup DeepSeek Challenges US Giants with Open-Source ModelDeepSeek, a Chinese AI startup, has gained significant attention in Silicon Valley for its rapid rise and the success of its open-source large language model, R1. R1's performance rivals leading US models despite being built with fewer and less powerful chips at a lower cost. The company's approach highlights the value of open-source AI and has sparked discussions about the future of the field.
Read more »