Some damage caused by the standing lampsake celloff in US Tech shares

By SIND Carv, Medha Singh, Amanda Cooper

New York/Bangalore/London (Reuters) -Technology shares on Tuesday lost some land and AI chip leader Navidia increased by more than 6%, which increased by low -cost Chinese artificial intelligence model after the previous day’s record -breaking wipeout Spark was done which endanger dominance. Among our rivals.

On Monday, Nvidia lost about 17% or $ 593 billion in the market price – a day’s loss for any company, while the shares of companies in semiconductor, power and infrastructure companies collectively more than $ 1 trillion. Exposed to.

Monday’s sales were inspired by the release of a free AI assistant launched by the Deepsek of China last week that the startup stated that the cost of the supported services uses low data at a fraction of the cost of services. This attracts attention around the world, although suspicion drew attention to the cost claims of Deepsak.

While the broad technology sector was up 2.7% on Tuesday, the Philadelphia Semiconductor Index was 0.2% below 9.2% on Monday, its deepest one day’s decline since March 2020.

“Today’s recovery is to be estimated to be estimated to be anticipated by benchmark company’s chip industry analyst Kodi Ekri. “Everything was taken down without much foresight at the risk of each company.”

Acree said Monday’s sales may motivate investors to think how much they want to pay for AI -related companies. But he does not see the emergence of the cheap AI model, denying the need for more advanced chips.

“You will need both an economically sensitive model without the leading edge with the most advanced performance, which will be pushed by the large basic models, which will continue to consume the vast majority of computing horsepower,” Ekri said.

He said, “Deepsek represents an increase in competition. We have never seen an industry where the increase in competition leads to low cost,” he said.

Nvidia shares were trading above $ 126 after a tadka started on Tuesday, but still trading well below $ 142.62 on Friday. Oracle was up 3.3% after falling about 13.8% on Monday. Marvel Technology shares increased by 2.7% after falling 19% in the previous season.

While there were some doubts over the cost claims of Deepsac, Microsoft-supported Openi CEO Sam Altman called the company a “influential model”, while US President Donald Trump called it “a wakeup call for our industries”.

“We will clearly distribute much better models and it is also valid to be a new competitor!” Altman, head of the AI ​​firm behind the slap, said in a social media post.

The sudden explosion of the AI ​​scene is the belief of the industry that China was behind its big American rivals.

Investors dumped technical shares everywhere, felt waves from Tokyo to Amsterdam to Silicon Valley.

“We don’t know how much we are going to get from these AI investments. Everyone’s second estimate is what we have been doing for two years for the last 18 months, who has been buying indiscriminately” in AI shares, AI shares In said, Kim Forest, Chief Investment Officer in Bokeh Capital Partners

“The road is rapid in a long time, but in a short period, things are uncertain.”

On the European side, the Dutch semiconductor company ASML’s US-traded stocks were down 1.6% on Tuesday after falling nearly 6% on Monday.

The celloff reminds that the investor capital focuses in such a small number of stocks that trade on a large premium in the rest of the market.

According to LSEG data, before Monday’s route, NVIDIA shares were trading about 60 times more of their earnings value, while with 22, according to LSEG data.

The promotion around the AI ​​has operated a huge flow of capital into equity, leading to an increase of about 10 trillion dollars in the market price of “luxurious seven” companies as Chat had closed the AI ​​Boom in November 2022.

However, the slide of Nvidia’s valuation attracts retail investors at 26.76, the lowest in a year.

Data Analytics firm Wanda Research showed that retail investors on Monday availed the saleoff in NVidia to snap the record net $ 562.2 million in the company’s stock. According to data from JP Morgan, they buy orders from retail orders, exit the order on Monday with a ratio of 2: 1.

The benefit of the tech index on Tuesday was thanks to a large part for market heavyweight like Apple, which was more than 4% and the biggest boost of Nasdaq. Other big drivers of the index were Nvidia and Microsoft as well as Amazon.com. The two later two were about 2% in the form of midday.

Many major technical companies, including Apple and Microsoft, are due to the earnings of the report later this week and investors will probably ask about capital expenses for AI.

(Reporting by SIND Carewas in New York, Medha Singh and Amanda Cooper in Bangalore; Additional Reporting by Harry Robertson and Dhara Ranasinghe in London, Ankur Banerjee and Rai Wei in Singapore, Kantaro Komia in Tokyo, Tokyo and Denillo Mesoni Bangalore in Tokyo, Tokyo in Tokyo, Tokyo and Denillo Mesoni Bangalore in Prano In Kashyap;