Negative: Technology stocks, particularly NVIDIA, plummeted after DeepSeek's new AI model raised concerns about data usage.

From Nasdaq: 2025-02-03 16:58:00

Technology stocks, particularly NVIDIA, plummeted as investors reacted to DeepSeek’s new AI model. Concerns arose about the massive spending by U.S. tech giants, with suspicions that DeepSeek may have used more NVIDIA chips and data from OpenAI without authorization.

Microsoft and OpenAI are investigating if DeepSeek leveraged data from OpenAI to train its models. This development could lead to AI becoming more affordable and widely adopted, benefiting various industries. Investors are reevaluating potential winners and losers in the technology sector post-DeepSeek.

Companies integrating AI into their products, like software firms and healthcare providers, could benefit as AI costs potentially decrease. ETFs like IGV, QQQE, and VTV could provide opportunities in this evolving landscape. Stay informed with Zacks’ free Fund Newsletter for top ETF news and analysis weekly.



Read more at Nasdaq: AI Winners Following the DeepSeek Disruption