DeepSeek AI Model Sends Shockwaves Through Nvidia, Slams ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2025
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Source: Benzinga
Market Reaction to DeepSeek's Launch: Nvidia's stock plummeted nearly 17.65% following the launch of DeepSeek, an AI startup that has surpassed ChatGPT in downloads, causing significant declines in various ETFs and semiconductor stocks.
Impact on ETFs: Leveraged ETFs like GraniteShares 2x Long NVDA Daily ETF dropped over 34%, while its inverse counterpart soared, reflecting heightened volatility and investor flight to safer assets amid fears triggered by DeepSeek's competitive threat to Nvidia.
Analyst Views on SOXX
Wall Street analysts forecast SOXX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOXX is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 348.670
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Current: 348.670
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
