(Bloomberg) — A selloff in global technology stocks is causing shockwaves beyond chipmakers and the Magnificent Seven.
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Power providers and equipment suppliers to data centers were among the worst-hit stocks after an artificial intelligence model from Chinese startup DeepSeek threatened US dominance in the space. Today’s declines for energy and equipment firms reversed gains that came after US President Donald Trump announced a multibillion-dollar AI project last week.
Shares of Siemens Energy AG slid as much as 22%, erasing their 2025 gains. Sweden’s Munters Group AB, which makes cooling technologies that help manage the immense heat generated by high-performance servers, slumped 14%.
In the US, Oklo Inc., the nuclear fission reactor company backed by OpenAI Inc.’s Sam Altman, fell 18% in premarket trading, having surged more than 60% last week. Power equipment provider Vertiv Holdings Co. and gas turbine manufacturer GE Vernova Inc. were set for similarly big declines at the open.
Read: DeepSeek Buzz Puts Tech Stocks on Track for $1.2 Trillion Drop
The drops mirrored those of bigger stocks including Nvidia Inc. and Dutch chip equipment maker ASML Holdings NV, which plunged as DeepSeek’s model raised questions over sky-high valuations in the sector.
Despite today’s selloff, demand growth for companies such as Siemens Energy, Schneider Electric SE and Legrand SA is unlikely to be derailed, according to Omid Vaziri, an analyst at Bloomberg Intelligence. DeepSeek’s models “could help accelerate AI user adoption,” he wrote.
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