Japanese chips fell because Deepseek’s challenge to American AI dominance causes concern for Asian technological companies

Japanese shares related to chips fell on Monday as Chinese AI startup deepseek It causes concern about the potential challenge of American global leadership in artificial intelligence that threatens Asian technological companies that are part of the artificial intelligence chain dependent on the US.

Stocks of the semiconductor test equipment Advantestwhat is calculated Nvidia Among their clients fell 7.99%. Tokyo Electron fell 3.94%, while the renesas electronics fell 0.4%.

SoftBank grouppossessed by ARM chip designers slid 5.4% after that trading larger last week About the executive director Masayoshi Son plans to invest $ 100 billion in the US

“Japanese chips are suddenly sold out because of Deepseek’s concern and we see the rotation of the growth name in value,” said Andrew Jackson, a strategy manager at Ortus Advisors, for CNBC via email.

Stocks associated with data centers that have been encouraged by higher consumption on technological infrastructure will also be affected, he added.

Sections of wire and cable companies Furukawa and Fujikura 9.8% and 8.16% also fell.

Deepseek launched a free open code model in a large language at the end of December, claiming he was developed in only two months at a price below $ 6 million. Last week, the Laboratory launched R1, a model of thinking that surpassed the latest Openi O1 in several third-party tests.

The new developments have encouraged concern about the large amounts of money that large technological companies invest in artificial intelligence and data centers. Deepseek also had to fight with strict limitations for the semiconduct The US government put on China, limiting access to advanced chips.

“Although it remains to be seen whether Deepsek will be shown in the long run with a sustainable, cheaper alternative, initial concerns are aimed at whether the power of American technological giants is threatened and whether their huge spending on artificial intelligence is re-evaluating,” IG market strategist Junrong Yeap said in a note.

Deepseek has become the most prevalent free app on Apple’s iPhone.

The fall of Japanese chips are dropped because the ODDAQ fans have fallen by 1.62% during trading in Asia.

“Judging by the movement of Nasdaq, the folder, maybe tonight, a tough ride and in the US awaits us,” Jackson added.

“With such a cheap model, many new products and experiences can now be emerging by trying to conquer the hearts and minds of the global population,” said Chamath Palihapitiya, Canadian-American risk capitalist and Social Capital CEO of Social Capital said on the social media platform xwho sees volatility in the stock market because the capital markets will strive to change the prices of the value of the companies from the “7 Magnificent”.

“Nvidia is most vulnerable for obvious reasons,” he said.