DeepSeek AI: Is it Revolutionizing Stock Charting for the Future?

by Daniel Raymond · March 26, 2025

Deepseek AI is changing the charts fast. Since the emergence of this Chinese AI app, particularly the R1 model, there has been a huge change in the stock market. A lot of stock charts have changed their algorithms. In the meantime, the tech sector stocks have been most affected. But traders are skiing- what happened so fast? How did Deepseek change tides so easily?

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Here’s what happened. As Deepseek proved to be superior, it questions the cost efficiency of the existing AI models. All predictions that quoted NVIDIA would be at the top of the charts for the 2nd quarter of 2025 are put to rest now.

The Course of Events

After a sharp reduction in tech stock values and the emergence of post-Deepseek, stock charts are now reshaping. Other than a sharp fall in tech stocks, Deepseek compelled bond yields to increase as well. Consequently, the mortgage rates also dropped, with a rise in bond prices.

NVIDIA’s Story

NVIDIA, one of the obvious blue chips through 2024, entered the Dow Jones index in the last quarter of FY 2024-25. Most investors put a lot of money at stake in NVDA. But the policy backfired as the stock started phasing out soon.

Presently, the AI chip maker is down after a sharp hit of 17%. The Dow Jones stats also say the same. Consequently, NVDA’s market cap is down by $590 billion. So, how does that involve Deepseek?

I know a lot of traders and brokers might be asking this question. But here’s a fact that you might have missed. Even after the plunge, Deepseek has been using NVIDIA chips for its AI-based platforms. Albeit in small quantities, the trust shown in the brand matters. Almost 20% of the investors offboarded NVDA from their portfolio. But they simply overlooked this fact.

Why does Deepseek’s Faith Matter?

Deepseek AI sent shockwaves across the US tech sector. Therefore, the equity market also suffered badly. NVDA and other forerunners took the massive hit. As a result, a lot of investors felt that Deepseek’s deadly move would put the future of the tech stocks at stake.

To fathom the real effect of Deepseek in the stock market, you need to understand the business strategy of the brand. Deepseek entered the market, claiming that they built their AI platform at a lower price than ChatGPT, Google, etc.

This news sent ripples down the market. People started feeling that the future of tech stocks was blurry. Dow Jones and S&P 500 outlooks suggest the same. Hence, there was a major retaliation in the stock market. Accordingly, the stock charts suffered too.

Take NVIDIA, for example.

Drop in US Tech Stocks After DeepSeek’s Entry. Reasons?

DeepSeek developed its platform at a much lower cost. It leveraged doubts that other tech giants could be overspending, too. With that, a possibility lit up that they might be replaced by potential alternatives soon, too.

That’s where the average high trust in tech stocks started plummeting. In the same vein, the confidence that people had in the 2024 tech stocks seemed to be melting. NVIDIA (currently 18.8%) was at the top in 2024. It lost its position to Apple Inc. in 2025. Microsoft, Accenture, and others also lost their positions to someone else.

There are abundant controversies about DeepSeek’s strategy. Bill Stein, from Primary Digital Infrastructure, said he can’t fathom that “4-year-old processors will compete with Nvidia’s new ones. On that note, DeepSeek reduced costs by revamping old processors, which they bought at an exceptionally low price.

Impact on Interest Rates

There might be controversies around DeepSeek. However, the AI company is driving changes in the stock index. There is a chance of a shift in interest rates soon. However, the federal government is trying hard not to do so.

In the meantime, investors think that DeepSeek’s impact can be ignored so easily. Firstly, DeepSeek has affected the primary power stocks. Further reports indicate that this Chinese company is consuming less than average energy compared to its US counterparts.

Experts say that the slump in power stocks is not a temporary phenomenon like the drop in tech stocks. In a recent data study by the Lawrence Berkeley National Laboratory, the US data centers consume about 12% of the total electricity generated. When data centers use less energy, the overall value of energy stocks will go down as well.

What Happens After Tech Stocks Falter?

Now is a time of speculation for investors. After the tech stock market plummets, the stock pickers would be really active. It would be amazing to see who can fill the gap at the top tier. In the meantime, it could bring ill omen for the rest of the market, too.

The plummeting stocks mean that the Dow Jones performance in the last two years would be hard to replicate in 2025. However, seasoned investors understand that market fluctuations are temporary, and focusing on long-term growth in stock market trends is essential. While the immediate impact of DeepSeek’s emergence has caused uncertainty, history shows that markets tend to stabilize over time, rewarding those who adopt a patient and strategic investment approach.

The Bottom Line

The latest candlestick analysis suggests big-time price movements. The market sentiments are slightly averse. This could also lead to trend reversals. And now, no predictive pattern would yield genuine results. So, the question is- What will the stock charts look like after the drop in tech stocks from the frontier? The head of Operations at Reflexivity, G. Sette, said that hardware producers will have a gala time now.

More companies would want to adopt the low-cost model introduced by DepSeek. While doing so, a lot of brands across sectors may suffer setbacks. At the same time, DeepSeek has a leverage that others don’t. For instance, a lot of people resort to DeepSeek to create data charts about the most plausible stocks to invest in. Meanwhile, DeepSeek will consolidate the stock market, eventually setting the stage for new toppers to emerge!