Source link : https://news7.asia/technology/tech-stocks-plunge-amid-rising-fears-over-ai-investment-triggered-by-chinas-deepseek/
Tech stocks faced a sharp downturn yesterday as China’s latest AI breakthrough, DeepSeek, sparked investor anxiety over escalating spending in the artificial intelligence sector. The Financial Times has learned that market participants are growing increasingly cautious about the pace and scale of investment required to remain competitive amid mounting geopolitical and technological pressures. This development underscores the widening impact of China’s aggressive push into AI on global equities, raising critical questions about valuations and future growth prospects across the tech industry.
Tech Stocks Falter Amid Rising Concerns Over AI Investment Sustainability
Investor confidence in technology equities has taken a sharp dip following alarming reports about China’s DeepSeek, a leading AI research firm, scaling back its funding commitments. Market analysts suggest this move signals potential overextension within the AI sector, casting doubt on the sustainability of skyrocketing investments. Key concerns revolve around whether the current frenzy for AI innovation is supported by genuine, scalable profit models or if it is driven primarily by speculative capital influx.
The immediate fallout has been mirrored by a notable drop in share prices of major tech players heavily invested in AI development. Financial data reveals a tightening in capital flows, with investors recalibrating their portfolios in response to perceived risks. Below is a snapshot of recent…
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Author : Isabella Rossi
Publish date : 2025-07-17 15:01:00
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