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Nasdaq 100 Dives As DeepSeek Damages AI Stocks

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The Nasdaq 100 dove Monday as investors reacted to the launch of new DeepSeek AI models from China.

Nasdaq 100 Dives As DeepSeek Damages AI Stocks

The Nasdaq 100 ($NDX) plummeted today as the tech-heavy index reacted to the reveal of new artificial intelligence (AI) DeepSeek models. The big news is the that power and efficiency of these new AI models match, or even surpass, the best ones available from U.S. tech companies. That’s an issue as the models come from China and were also made open source, allowing anyone to use or modify them.

This threw a major wrench into the development plans of AI companies. It also shook investor confidence in the sector as the cost to develop the new DeepSeek models was reportedly well below what U.S. companies have spent. The increased interest also catapulted DeepSeek above OpenAI’s ChatGPT on Apple’s (AAPL) App Store.

The DeepSeek reveal dragged the NDX 2.72% lower as of this writing. That’s set to erase much of the index’s 3.63% year-to-date increase. This could signal a turnaround for AI stocks, which have undergone massive gains over the last year.

Which Stocks Are Hit The NDX Today?

Turning to the TipRanks Nasdaq 100 heatmap tool, traders will see the exact stocks weighing on the index today. As expected, tech stocks tied to AI are behind the NDX drop. Leading this decline are Broadcom (AVGO) and Nvidia (NVDA) with 13.6% and 12.91% decreases, respectively. Other tech stocks dropping today include Alphabet (GOOGL), Microsoft (MSFT), and Advanced Micro Devices (AMD).

How to Invest in the Nasdaq 100

Investors can’t hold a direct stake in the Nasdaq 100 as it’s only an index. Instead, they might consider buying shares of companies listed on it. Today’s dips make Nvidia and Broadcom attractive targets, but only if investors believe they can bounce back from the damage done by DeepSeek.

Another option is investing in exchange-traded funds (ETFs) that track the NDX. That includes ETFs that bet on and against the index. One popular choice is the Invesco QQQ Trust (QQQ) but there are plenty of ETFs to choose from.

See more Nasdaq 100 ETFs

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