Impact of Chinese Startups in the Artificial Intelligence Sector on the Global Stock Market

Last week, global stock markets experienced intense turbulence triggered by unexpected news regarding advancements from the Chinese startup DeepSeek. This event significantly impacted semiconductor manufacturing companies and led to noticeable changes in both Asian and American indices.

Nvidia's Stock Plunge: A Historical Low

One of the most notable events was the 17% drop in Nvidia's $NVDA stock, resulting in a loss of approximately $593 billion in market capitalization. This record surpassed all previous lows set by the company in September of last year.

Nvidia's decline is attributed to the unexpected debut of the competitor, the Chinese startup DeepSeek, which launched an innovative AI assistant. The new model, known for its cost-effectiveness in production and operation, raised concerns among investors about future business models in the supply chain, from chip manufacturers to data centers.

Market Developments

The influence of new technologies from the Chinese startup spread to a broad spectrum of technology companies. Significant losses were observed among semiconductor manufacturers, as evidenced by a 9.2% drop in the semiconductor index $SOXL. This slump was the largest seen since March 2020.

Major Decline Factors:

- DeepSeek's success in developing an advanced AI model that requires lower computing power.

- A record number of downloads of the new DeepSeek AI assistant from Apple's App Store $AAPL, surpassing the popular ChatGPT from OpenAI.

Sectors Most Affected

Companies focused on chip production and data processing equipment faced significant pressure. Investors began reassessing growth expectations in the technology sector, reflected in the following indicators:

1. The Nasdaq index recorded its largest one-day drop since December 18 of last year.

2. Semiconductor companies lost a significant portion of their overall market capitalization.

Technological Race: United States vs. China

The active promotion of Chinese technologies on the global stage intensifies global competition. Innovations from DeepSeek present a challenge that could affect both future developments and investment distribution in the markets.

While American companies have managed to maintain leadership in innovations, the new wave of technologies from China casts doubt on the stability of such positions and the capitalization of major players.