AI Infrastructure Stocks Collapse as DeepSeek Sparks Global Tech Selloff

A sweeping selloff in AI infrastructure equities triggered steep losses across U.S. markets Tuesday, with the Nasdaq bearing the brunt of the decline. Nvidia shares plunged 16%, dragging down a cohort of semiconductor and data center hardware manufacturers. The rout followed the emergence of DeepSeek, a Chinese AI model that analysts say threatens to upend existing supply chain economics by reducing reliance on high-end GPUs. Advanced Micro Devices tumbled 11%, while Broadcom slid 9.5%. Super Micro Computer dropped 14%, reflecting investor fears over compressed margins in the AI hardware segment. Market breadth was dismal—decliners outnumbered advancers on the NYSE by more than 4 to 1, with trading volume spiking to its highest level in six months. “The AI trade is being repriced in real time,” said Dan Ives of Wedbush Securities. “DeepSeek’s efficiency gains could erode pricing power for legacy chipmakers.” The tech-heavy index is now down 8% from its December peak, marking its worst two-week stretch since the 2022 bear market.

Dispatch from Elara Vance (Night-Shift Breaking News Lead).