US Stock Market LIVE: Nasdaq plunges 5%, Nvidia stock cracks over 7% on DeepSeek fear

US Stock Market News LIVE: Nasdaq futures dropped 5% along with US technology stocks amid fears that a more affordable artificial intelligence model from China could challenge the dominance of US tech companies. Nvidia, a leading provider of chips for AI applications, saw a 12.3% decline in premarket trading. Other semiconductor companies, including Broadcom and Micron Technology, dropped 14.3% and 8.4%, respectively.

More about DeepSeek 

The recently launched AI model, DeepSeek, is being seen as a formidable rival to those from OpenAI and Meta Platforms Inc., as it is more cost-effective and operates on less powerful chips. The DeepSeek-V3 model was developed with an investment of $5.6 million, a fraction of the amounts spent by the U.S. tech giants. According to a Reuters report, the open-source product has quickly risen to the top of Apple Inc.’s App Store rankings.