Nvidia, Broadcom Stocks Tumble Pre-Market As DeepSeek’s Arrival Sparks Fears Of AI Bubble Burst: Retail Turns Extremely Bearish

Google News Follow Us

Synopsis

The biggest takeaway is DeepSeek-R1’s computing and cost requirements – it is said to consume 97% less computing power while costing 50 times less than OpenAI’s models.

Shares of Nvidia Corp. (NVDA), Taiwan Semiconductor Manufacturing Co. (TSM), Broadcom Inc. (AVGO), and other semiconductor companies fell in pre-market trade on Monday as Chinese AI startup DeepSeek’s open-source model threatened the hegemony of industry leader OpenAI.

At the time of writing, Nvidia stock price was down more than 11% during pre-market trade, while TSMC and Broadcom stocks were down more than 10%. Arm Holdings Plc. (ARM) and ASML Holdings NV (ASML) stocks fell more than 7%.

The rout in AI stocks also spilled over to the broader markets, with the Nasdaq 100 index futures tumbling 3.6% at the time of writing.

DeepSeek, funded by the Chinese hedge fund High-Flyer, was founded by Liang Wenfeng in Hangzhou, Zhejiang. Its R1 large language model is said to match the performance of OpenAI’s o1 across math, code, and reasoning.

The biggest takeaway is DeepSeek-R1’s computing and cost requirements – it is said to consume 97% less computing power, allowing the company to work around the U.S. government’s restrictions on the export of high-end AI chips to China.

It also costs 50 times less compared to OpenAI’s models.

Retail sentiment on Stocktwits for Nvidia stock turned ‘extremely bearish’ (21/100) from ‘bearish’ (35/100) a day ago.

NVDA retail sentiment.jpg

For TSMC stock, the sentiment meter remained in the ‘neutral’ (47/100) territory.

At the same time, ARM stock drew a ‘bearish’ (43/100) take by retail investors on Stocktwits.

ARM retail sentiment.jpg

Nvidia’s stock price has had a slow start to 2025, gaining a little over 3% year-to-date, while Broadcom has gained nearly 5.5%.

TSMC’s stock price has gained over 10% in 2025 so far. On the other hand, Arm’s stock has gained over 26% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

Latest Videos

'Indian Military Bases, Systems Fully Operational': Air Marshal AK Bharti on Operation Sindoor
'Indian Military Bases, Systems Fully Operational': Air Marshal AK Bharti on Operation Sindoor
Uproot Pakistan-Bred Terrorism: Kargil War Hero Captain Saxena On Operation Sindoor | Exclusive
Uproot Pakistan-Bred Terrorism: Kargil War Hero Captain Saxena On Operation Sindoor | Exclusive