DeepSeek's AI Chip Threat Adds Fuel to 4.65% Semiconductor Selloff
A brutal 4.65% drop in the PHLX chip index on July 7 was exacerbated by reports that Chinese startup DeepSeek is developing its own AI chip, posing a new competitive threat to Nvidia and Huawei. Even Samsung’s record earnings couldn't stop the rout, as the AI hardware boom faces a valuation reality check and rising global rivalry.