Japanese technology shares plunged on Tuesday as the global market turmoil, triggered by a groundbreaking Chinese artificial intelligence model DeepSeek, extended into its second day. Investors are now reassessing the dominance and valuations of leading AI firms.

Shares for leading US chip firm Nvidia dropped by almost 17% on Monday after the emergence of DeepSeek stunned Silicon Valley.

It all stemmed from a free AI assistant launched by Chinese startup DeepSeek last week that the firm sa id uses less data at a fraction of the cost of services available currently, garnering significant attention worldwide including from OpenAI CEO Sam Altman who called it an “impressive model”.

DeepSeek’s release of the R1 reasoning model has dragged Nvidia shares and tech shares globally wiping $593 billion from the AI chipmaker’s valuation.

European and US markets were in positive territory as investors continue to digest the potential impact of DeepSeek.

Ripples were felt from Tokyo to Amsterdam to Silicon Valley and even Singapore. Read more at straitstimes.com.

The FTSE 100 ( ^FTSE) and European stocks were in positive territory on Tuesday, while US indices lacked direction, after a panicked day in markets as tech investors digested the release of DeepSeek's R1 AI model, which has left industry watchers questioning lofty valuations of chip firms.

Technology stocks fell sharply in Asia after the emergence of Chinese artificial-intelligence startup DeepSeek triggered a selloff in AI-related stocks overnight and cast uncertainty over the rising demand for data centers.

Japan’s chip-related stocks fall as DeepSeek gained momentum, raising concerns about a challenge to America’s global leadership in artificial intelligence.

TSX futures followed sentiment higher ahead of tomorrow’s expected interest-rate cut by the Bank of Canada. In Canada, investors are getting results from Metro Inc. On Wall Street, markets are watching earnings from Boeing Co., General Motors Co. and Starbucks Corp.

London stocks ended Monday with a mixed performance as investors braced for a week dominated by key interest rate decisions and major corporate earnings.

Wall Street analysts rerated NVIDIA Corp NVDA -3.53% Get Free Report after U.S. tech stocks plunged Monday as Chinese open-source artificial intelligence platform DeepSeek made the market jittery over the AI technology investment prospects in the U.S. tech firms.