While companies like DeepSeek may find success in certain market segments, they face an uphill battle against this massive capital advantage. In other words, claims that demand for Nvidia's premium chips will collapse simply don't align with market realities and the trajectory of AI development.

Who will drive the stock market as the Fed holds its first meeting of the year? This could be the worst day in nearly five years for the PHLX Semiconductor Index, led by major weakness in hot artificial-intelligence plays like Nvidia Corp.

Shares for leading US chip firm Nvidia dropped by almost 17% on Monday after the emergence of DeepSeek stunned Silicon Valley.

Powerful artificial intelligence software from Chinese startup DeepSeek indicates that its engineers built a competitive model despite US attempts to curtail China’s tech development, raising questions about the effectiveness of Washington’s trade curbs.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

NVIDIA, the world's most valuable company until Monday, lost $600 billion of market value in a single day, the biggest in US stock history.

The tariffs would ensnare cutting-edge smartphone and PC-related chips for Apple, AMD and Nvidia if enacted. But Trump is betting his plan will bring more chip production to the US.