AI Rout Triggers Sharp Stock Decline as DeepSeek Sparks Market Panic

AI rout Sends U.S. Tech Shares Tumbling

The latest AI rout ignited by Chinese firm DeepSeek has ripped through U.S. equity markets, dragging the Nasdaq Composite down ↓ 2.5% in early trading. Investors are shedding exposure to AI infrastructure, where several names posted double‑digit losses.

Foremost among the casualties, Nvidia slumped ↓ 16%, erasing billions of market value and widening the sector’s downside momentum. Smaller chipmakers and cloud‑service providers echoed the decline.

“The market reaction underscores the volatility inherent in AI‑centric valuations,” said an analyst at Reuters.

Analysts at Bloomberg warn that the sell‑off could extend if further AI‑related earnings disappoint, prompting a reassessment of growth assumptions that have buoyed tech stocks this year.