Japan's Chip Stocks Drop as DeepSeek Sparks Concerns Over US Tech Leadership
TMTPOST -- Shares of Japan's chip-related companies, including Advantest Corp., dropped sharply as DeepSeek, a Chinese AI startup, gained momentum, fueling fears that the app could challenge US technological dominance.
Advantest, a key supplier to Nvidia Corp., saw its stock fall by 8.2%, while Disco Corp. slid 2.9%. The tech and semiconductor sectors faced profit-taking pressure on Monday, following a strong rally last week driven by SoftBank Group Corp.'s announcement of plans to partner with companies like OpenAI and Oracle Corp. to invest in AI infrastructure in the US.
SoftBank, which surged 16% last week, dropped 5.4%, and companies like Furukawa Electric Co. and Fujikura Ltd., which supply cables for data centers, saw their shares fall by at least 8%.
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