The Rise of DeepSeek and Its Impact on U.S. Tech Stocks

The emergence of the Chinese startup DeepSeek has generated significant concerns regarding the valuation of major U.S. tech companies. DeepSeek's cost-effective AI model operates on less advanced chips, challenging the perceived supremacy of U.S. firms like NVIDIA and raising doubts about their inflated market valuations. Analysts suggest that this development could disrupt the long-standing narrative of U.S. tech dominance, which has thrived on high investment and productivity. The performance of stocks such as NVIDIA and others has already been adversely affected, indicating the market's growing unease over this competitive shift.