How DeepSeek’s AI breakthrough could disrupt Nvidia & shake up tech stocks

China’s DeepSeek, an emerging AI startup, has caught the attention of investors and analysts with its recent advancements, causing a noticeable drop in the stock market. On Monday, the Nasdaq fell 3.1 per cent, with Nvidia stock dropping 17 per cent — the largest decline of the day.

DeepSeek’s breakthrough centers on the launch of large language models (LLMs) that rival the performance of AI systems from industry leaders like OpenAI, Google, and Meta. Despite facing major obstacles, such as chip export restrictions, the company has delivered remarkable results, sparking speculation about the future direction of AI development.