based in china DeepSeekdeeply impacted global technology stocks and the cryptocurrency market on Monday. Analysts think that this development may challenge the technological superiority of the USA. Investors are particularly concerned about the reduced reliance on high-cost chips. This has brought the current valuations of Nvidia and similar companies into question again. As a result of the discussions on this side, sharp declines were seen in artificial intelligence-themed altcoins. Some experts point out that DeepSeek’s success calls into question the large-scale spending on US-based companies.
DeepSeek Shook the Markets
Union Bancaire Privee manager Vey-Sern Ling“DeepSeek showed that powerful models can be produced at low cost,” he said. This statement made investors who closely follow companies such as Nvidia hesitate. Nasdaq 100 futures fell about 2.5 percent, S&P 500 On the other hand, there was a decrease of 1.4 percent. In addition, the positive atmosphere created by Donald Trump’s assumption of the presidency was extremely weakened in the pre-trading session. As a result, Nvidia supplier Advantest Corp. It lost more than 8 percent in Tokyo.
Similarly, Mapletree Industrial Trust, which stands out with its data center investments, lost 3.6 percent of its value. On the other hand, transaction volume in the markets remained limited due to holidays in Taiwan and South Korea. However, DeepSeek’s model OpenAI And MetaIt competes with new solutions from . Marc Andreessendescribed this development as “one of the most striking breakthroughs”.
DeepSeek, which ranks high in Apple’s app store, currently interacts with users transparently. Experts emphasize that the Chinese company benefits from open source technologies despite Washington’s export restrictions.
The cryptocurrency market also has its share of the shaking in global markets. The biggest cryptocurrency Bitcoin (BTC) 
$99,231.3 It dropped by more than 5 percent to 97 thousand 795 dollars. largest altcoin Ethereum (ETH) 
$3,072.0 It decreased by more than 7 percent to 3 thousand 24 dollars. The biggest loss is artificial intelligence altcoins recorded by. Near Protocol (NEAR), rendering (RENDER), Bittensor Leading AI altcoins such as (TAO) melted over 10 percent.
Competition in the Field of Artificial Intelligence Is Intensifying
Interest in DeepSeek has increased rapidly in China, as well as around the world. Companies such as Merit Interactive have confirmed that they are using this new model in their marketing processes. in hong kong Hang Seng Tech Index It rose 2 percent on the first day of the week. Commentators have attributed this rise to China’s own technological breakthroughs. Thus, the strategies of Silicon Valley companies with huge budgets began to be questioned.
Aletheia Capital analyst Nirgunan Tiruchelvam“This development has made us question whether the huge expenditures to date are the best method,” he said. This questioning Apple And Microsoft It caused an increase in investor concerns ahead of the balance sheets to be announced by giants such as. The Nasdaq 100 is still trading at a forward multiple of 27, which some analysts consider overpriced.
The rapid rise of DeepSeek indicates that competition in the field of artificial intelligence will become even more intense. Saxo Markets expert Charu Chanana“Leading companies may remain dominant, but the emergence of new competitors may change the balance in the future,” he evaluated. All eyes are now on the quarterly earnings reports of major US technology companies and the reaction of the markets to these developments.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
