Market history · Technology ·
The DeepSeek shock
On 27 January 2025 shares in AI-linked companies fell sharply after Chinese start-up DeepSeek's models drew attention for reportedly being trained at a fraction of the cost of US rivals. Nvidia's shares fell by roughly a sixth, the largest single-day loss of market value for any listed company at the time.
The move questioned assumptions about how much computing hardware AI would need. Markets recovered part of the loss in the following weeks, but the day showed how much of the index was concentrated in a small group of AI-exposed companies.
The takeaway
Concentration works both ways: when a few names drive an index, a single surprise can move the whole portfolio.
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.