The stock market is plummeting this morning.

Nvidia, Marvell, and Broadcom are all down 10%+ as I write this.

DeepSeek, a Chinese artificial intelligence upstart, has sent shockwaves through the AI sector.

The company's ability to train high-performing AI models at a fraction of the cost and without top-tier chips from Nvidia and others has triggered a reassessment of AI spending expectations.

As a result, leading AI and semiconductor stocks are tumbling, and investors are scrambling for safety.

DeepSeek’s Disruption: What’s Happening?

DeepSeek has built an AI chatbot that rivals those from U.S. tech giants – like OpenAI – without the same level of expensive infrastructure.

The company relies on innovative training techniques and less-advanced chips, upending the assumption that cutting-edge AI development requires billions in capital expenditures from companies like Nvidia.

This revelation is shaking up the market, as investors had banked on massive spending from companies like Alphabet, Meta, and Microsoft to fuel continued growth in the AI chip industry.

U.S. chipmaker stocks are taking a severe hit.

Nvidia, Broadcom, and Marvell Technology are all down over 10%, while the Nasdaq-100 has dropped nearly 4%, signaling one of the worst trading days for tech stocks in recent years.

Bond yields are falling as investors seek safety, and even Bitcoin has declined amid the market turmoil.

The concern is that if DeepSeek’s methods gain traction, AI companies may not need to spend nearly as much on hardware, putting the sky-high valuations of semiconductor stocks at risk.

Some analysts are questioning whether the industry has been over-provisioning compute resources, meaning the demand for Nvidia’s high-end GPUs could fall dramatically.

Is This the End of the AI Boom?

Not everyone believes DeepSeek spells doom for AI infrastructure players.

Analysts like Bernstein’s Stacy Rasgon argue that while DeepSeek’s techniques lower training costs, AI demand is still surging.

He argues tech giants will likely accelerate spending to maintain their lead, leveraging their access to advanced GPUs to outperform cheaper alternatives.

Additionally, while DeepSeek may have slashed training costs, the real test lies in AI inference – the process of applying trained models to real-world applications.

As AI becomes more ubiquitous, companies will still need vast computing power, suggesting that the long-term demand for chips should remain robust.

There are also additional concerns regarding DeepSeek itself:

• DeepSeek is a Chinese-owned company that has restrictions on the data and answers it shares. Try asking DeepSeek’s AI about Tiananmen Square… It won’t answer.

• DeepSeek is now the #1 app on the Apple App Store, but users should beware before downloading. Its terms of service request access to email accounts, raising privacy concerns.

• There is uncertainty about DeepSeek’s origins, its funding sources, and potential ties to the Chinese Communist Party (CCP).

What’s Next for Investors?

This selloff comes at a critical time, with major AI spenders like Microsoft and Meta set to report earnings this week.

I will be looking for clues about whether hyperscalers will adjust their AI investment strategies in light of DeepSeek’s advancements.

For now, the market is in a deep freakout mode, which presents us with the opportunity we’ve been waiting for.

The Million Mission thrives on meaningful pullbacks and emotional investors, which is exactly what we’re experiencing this morning.

I’m in full research mode, figuring out what DeepSeek means for the future of Ai.

Stick with The Million Mission as I bring my best insights straight to your inbox.

A trade is on the way.