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How the buzz around Chinese AI model DeepSeek sparked a massive Nasdaq sell-off

1. DeepSeek's launch raises doubts about U.S. tech AI investments. 2. Chinese startup DeepSeek's model outperforms U.S. competitors. 3. Nvidia shares fell over 12% following DeepSeek news. 4. Investor confidence in AI sector shaken by DeepSeek's emergence. 5. Power producers also affected by tech stock sell-off.

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FAQ

Why Bearish?

DeepSeek's competitive edge undermines confidence in leading U.S. tech stocks, echoing past downturns in tech valuations due to emerging competition.

How important is it?

The emergence of a competitive AI player impacts investment perspectives in the broader tech sector, affecting key players like Nvidia.

Why Short Term?

Immediate market reactions to DeepSeek's announcements suggest short-lived effects as investors reassess tech valuations.

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