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China’s Deep Silicon Strikes: Nasdaq Faces $1 Trillion Drop Amid Tech Sector Turbulence

Deep Seek: A Rising Competitor in the AI Sector

Deep Seek is Challenging American Tech Companies While NASDAQ Valuation Drops by One Trillion Dollars

In recent years, advancements in the field of artificial intelligence (AI) have significantly benefited American technology companies, accumulating billions in profits. Notably, the market value of Nvidia has skyrocketed from $150 billion in 2020 to approximately $3 trillion this year.

However, a new Chinese competitor, Deep Seek, is entering the fray with a minimal focus on collaboration with existing apps and programs in the AI industry. This could potentially disrupt market dynamics further.

According to technology expert Karsten Zhang, “AI capabilities have become increasingly affordable and effective. We are witnessing consistent advancements in this sector. While there are projections that AI developments will plateau around 2024, the pace of innovation has accelerated, leading to a broad array of diverse applications and capabilities in AI.”

Concerns are growing regarding China’s rapid progress in AI and semiconductor technology, threatening American market shares.

The stock prices of Nvidia, which has become a major player in chip manufacturing for AI, have experienced a 17% decline, resulting in a loss of approximately $600 billion in market capitalization.

Fiona Cincotta, an equity market strategist at Citi, pointed out, “Investors were not prepared for this swift downturn. In my view, this is what led to a rapid sell-off in Nvidia’s shares. It marked the worst trading day in the company’s history, and we are closely monitoring how the NASDAQ will respond.”

In addition to Nvidia, other American semiconductor firms, such as Broadcom, witnessed a 17.4% decline in their stock values.

The decline in the technology sector has drawn significant attention, as the overall value of NASDAQ, where many American companies operate, dropped by 3.1%, equating to a loss of $1 trillion.

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