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Tech Stocks Slide In Premarket As Buzz Over Chinese AI Startup DeepSeek Triggers Concerns

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Updated Jan 27, 2025, 05:19am EST

Topline

Several major U.S. tech and artificial intelligence stocks tumbled in premarket trading early on Monday, after the successful launch of Chinese startup DeepSeek’s latest AI model—which impressed observers by running on less powerful chips that its U.S. rivals—triggered questions about America’s leadership in the space.

Key Facts

The tech-centric Nasdaq 100 Futures slumped by 3.1% to 21,218 early on Monday, while the S&P 500 Futures fell around 1.9% and Dow Futures were down nearly nearly 0.9%

Top AI-related tech and silicon stocks were also impacted by the selloff with the share price of chipmaking giant Nvidia dropping nearly 10% in premarket to $128.55.

Shares of Microsoft, Google and Meta were also down, dropping 4.3%, 3.1% and 4.1% respectively in early morning trading on Monday.

Top silicon stocks were also hit with chipmakers AMD and Broadcom’s shares tanking 4.53% and 10.34% respectively in the premarket, while the Dutch-listed shares of ASML—maker of the world’s most advanced chip-making machines—was down 10.62% in morning trading in Europe.

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Siladitya Ray is a reporter on the Forbes news team who covers major world news stories breaking overnight with a focus on technology and online

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