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Short Sellers Reap Huge Profits After DeepSeek AI Models Shock Wall Street
AI Sector Faces Major Disruption as Chinese Startup Unveils Cost-Effective AI Models
DeepSeek’s AI Models Challenge U.S. Dominance
Chinese startup DeepSeek’s new AI models, said to be on par with or even surpassing the leading U.S. technologies, have shaken up the AI market. The models are priced significantly lower, causing a stir among major players in the industry.
Nvidia Hit Hard: $593 Billion Loss in Single Day
The unveiling of DeepSeek’s models triggered a historic loss for Nvidia. The chipmaker saw $593 billion wiped off its market value, marking the biggest single-day loss ever for any company.
Short Sellers Cash In on Nvidia’s Decline
Traders who bet against Nvidia made record profits of about $6.6 billion, the largest single-day move in the stock’s history, according to data analytics firm Ortex.
Broadcom and Other AI Stocks See Major Losses
In addition to Nvidia, other AI-related companies were heavily impacted. Broadcom saw more than $2 billion in profits for short sellers betting against its stock.
Stocks like Super Micro, Equinix, and Vistra also suffered significant losses, contributing to over $900 million in combined profits for investors betting against these firms.
AI Market Sentiment Shifts Dramatically
The emergence of DeepSeek’s low-cost AI technology underscores how swiftly the AI landscape can change, leading to massive financial impacts for investors and companies alike.