ASIBs raise concerns for Asian tech firms as Japanese chip stocks DeepSeek US challenge

Japanese chip stocks fell on Monday Chinese AI Startup Deepseek Asian tech companies are concerned about a potential challenge to America’s global leadership in artificial intelligence, which threatens part of the US-Asseven AI value chain.

Semiconductor Test Equipment Supplier Stock Reasonablewhich counts Nvidia It fell 7.99% among its customers. Tokyo Electronics fell 3.94%, while Renesas Electronics fell 0.4%.

Softbank Groupwhich has a chip designer arm, trailing by 5.4% Traded higher last week in the CEO Masayoshi’s son plans to invest $100 billion in the United States

“Japan’s chip stocks are selling off sharply on Deepsek concerns and we’re seeing a reversal from growth names,” Andrew Jackson, head of equity strategy at Ortus Advisors Center, said in an email.

Data center-related stocks, boosted by higher technology infrastructure spending, will also be hit, he added.

Stocks of wire and cable companies Furukawa and Fujikura It fell by 9.8% and 8.16%, respectively.

In late December, DeepSeek launched a free, open-source suite of tunes it claims it developed for just two months For under $6 million. Last week, Labs launched the R1, a think tank that outperformed Openai’s newest O1 in several third-party tests.

The new developments have raised concerns about the huge amount of money big tech companies have invested in AI models and data centers. Deepseek also had to fight back Hard semiconductor constraints The US government placed it in China, restricting access to advanced chips.

“There are initial concerns that DeepSeek will be a viable, cheaper alternative in the long term, threatening the pricing power of US tech giants and prompting a reevaluation of their massive EU spending,” Junnong Yeap, IG’s market strategist, said in a note.

Deep down has become the most downloaded free app Apple iPhone.

Shares of Japanese chip shares, NASDAQ futures fell 1.62% during Asian trading hours.

“Judging by the action in Nasdaq futures, we could be in for a rough ride tonight,” he said.

“With this low-cost model, many new products and experiences are now trying to win the hearts and minds of the global population,” said Chamat Palihapitiya, Canadian-American Venture Capitalist and CEO of Social Capital. Social media platform xthose who see volatility in capital markets on the stock exchange will want to reassess the values ​​of the “Magnificent 7” companies.

“Nvidia is the most at risk for obvious reasons,” he said.