Broadcom's panic sell-off was triggered by unverified claims about DeepSeek's low development costs. See why I continue to rate AVGO stock a strong buy.

Broadcom stock is struggling for direction Tuesday after the chipmaker fell sharply Monday following the release of DeepSeek, a cheap AI chatbot.

The release of DeepSeek’s open-source AI chatbot caused a sharp sell-off in Nvidia and Broadcom, shifting market sentiment in favor of AI users.

The Chinese chatbot DeepSeek demolished the US stock market, bringing down the capitalization of American companies by a trillion dollars. This is reported by the world media.

Japanese tech firms sank Tuesday following a rout on Wall Street after China's DeepSeek chatbot upended the artificial intelligence sector and sparked questions about huge investments by US titans. Tokyo-listed companies linked to the artificial intelligence sector tanked for a second straight day as investors tracked a rout on Wall Street that saw Nvidia crumble 17 percent,

The popularity of China's DeepSeek's chatbot appears to have shattered a widespread belief that developing artificial intelligence requires many billions of dollars of investment as has been in the case of US AI models.

US tech giant Nvidia lost over a sixth of its value after the surging popularity of a Chinese artificial intelligence (AI) app spooked investors in the US and Europe. DeepSeek, a Chinese AI chatbot reportedly made at a fraction of the cost of its rivals, launched last week but has already become the most downloaded free app in the US.

Japanese tech firms sank Tuesday after a sell-off in US titans following news of China's DeepSeek chatbot, while the dollar rallied on a report saying Washington was considering universal tariffs

The initiative comes after R1 stunned the artificial intelligence community by matching the performance of the most capable models built by U.S. firms, despite being built at a fraction of the cost. Hugging Face researchers say the Open-R1 project aims to create a fully open-source duplicate of the R1 model and make all of its components available to the AI community.

Following the market plunge triggered by the release of the DeepSeek chatbot, Nvidia has recovered a large portion of its losses.

DeepSeek is a Chinese AI firm specializing in large language models (LLMs). Founded in 2023 by Liang Wenfeng, a co-founder of hedge fund High-Flyer, the company develops open-source AI models.

"During the past 24 months or so, Apple has been the stock everyone has loved to hate, and that trend has continued into 2025," Rubin told clients in a new note. "Apple has been left behind in this year's rally but the stock's decline this January is reminiscent of the start of last year."