AI-Fueled Stock Rally Dealt $1 Trillion Blow by Chinese Upstart DeepSeek - Bloomberg
www.bloomberg.com
Date posted: May 7, 2025 at 1:48am
For the better part of two years, artificial intelligence technologies have been a nonstop gift for US equities investors. The Nasdaq 100 Index rose 92% from the start of 2023, adding more than $14 trillion in value and minting billions for a handful of tech executives and founders.
Expanded Summary
In recent months, the stock market has experienced a remarkable surge, primarily driven by advancements in artificial intelligence, with the Nasdaq 100 Index soaring by 92% since the beginning of 2023. This meteoric rise has translated into over $14 trillion in added market value, significantly enriching a select group of tech executives and founders. However, this upward trend faces a potential challenge from a Chinese technology firm named DeepSeek, which has recently emerged as a formidable competitor. This development has raised concerns among investors, as it could signal a turning point in the AI-driven stock rally that has been a boon for U.S. equities, potentially overshadowing the gains achieved over the past two years.
What you’ll learn
The impact of AI on the stock market and investor sentiment.
How DeepSeek's emergence as a competitor could affect U.S. equities.
The potential implications of a $1 trillion market shift in tech investments.
Why this matters
The dynamics of the stock market are increasingly influenced by technological advancements, particularly in AI. Understanding the implications of new entrants like DeepSeek is crucial for investors, as it can reshape market landscapes and redefine investment strategies. As competition intensifies, the potential for volatility increases, making it essential for stakeholders to stay informed about shifts in market power and their consequences.
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