Japanese chip stocks collectively slump due to DeepSeek impact

On January 27th, according to Bloomberg, Chinese AI startup DeepSeek released a competitive AI model, sparking market concerns about its threat to the leading position of American technology. Japanese chip stocks plummeted significantly.

Nvidia supplier Advantest fell by 8.2%, Disco Corp dropped by 2.9%, SoftBank Group declined by 5.4%, and data center cable manufacturers Furukawa Electric and Fujikura Ltd both fell more than 8%.

Market insiders pointed out that the huge returns on investment in the AI field from large tech companies are questionable, and DeepSeek may be a key factor triggering a pullback in tech stocks.