TSMC Shares Plummet Amid AI Sector Turmoil Following DeepSeek's Controversial AI Model Announcement

Nvidia Supplier TSMC's Shares Plunge Over 6% In Taiwan As AI Selloff Intensifies Amid DeepSeek Impact - NVIDIA (NASDAQ:NVDA), Tesla (NASDAQ:TSLA)

Taiwan Semiconductor Manufacturing Co. TSMWF shares dropped sharply Monday as trading resumed after the Lunar New Year holiday, with investors responding to last week's global selloff in artificial intelligence stocks triggered by developments at Chinese AI firm DeepSeek. What Happened: TSMC shares fell as much as 6.6% to 1,070 New Taiwan dollars ($32.32) on the Taiwan exchange, marking their steepest decline in nearly six months. The selloff dragged down Taiwan's benchmark Taiex index by 4.4% to 22,627 points, while Hon Hai Precision Industry Co. also known as Foxconn tumbled 9.2% to 165.50 New Taiwan dollars. The decline follows DeepSeek's announcement of its R1 AI model, which the company claims was developed for just $5.6 million - a figure that has drawn skepticism from industry experts. Wedbush analyst Dan Ives dismissed the claim as "likely a fictional story," noting that comparable models like OpenAI's GPT-4 required investments exceeding $100 million. See Also: 14 Million Job Seekers Didn't Hear Back From Potential Employers In Just A Single Quarter Last Year: Now LinkedIn Is Moving To Change That With AI Help Why It Matters: The controversy deepened as prominent tech figures raised concerns about DeepSeek's development process. OpenAI investor Josh Kushner suggested the Chinese model may have been trained using U.S. technology in violation of export controls. Scale AI CEO Alexandr Wang alleged DeepSeek had acquired 50,000 advanced chips through unreported channels, a claim that Tesla Inc. TSLA CEO Elon Musk appeared to support. The uncertainty surrounding DeepSeek's capabilities and methods has rippled through the semiconductor sector, contributing to a $600 billion decline in Nvidia Corp. NVDA market value last Monday. TSMC's TSM U.S.-listed shares had previously fallen 13% last Monday before recovering some losses. The White House has reportedly begun examining DeepSeek's operations for potential national security risks, particularly given the company's backing by High-Flyer, an $8 billion Chinese quantitative hedge fund. Read Next: Bank Of Japan Signals Further Rate Hikes Possible Amid Inflation, Economic Overheating Worries Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. NVDANVIDIA Corp$119.23-4.35%Overview Rating:Good75%Technicals Analysis1000100Financials Analysis600100WatchlistOverviewTSLATesla Inc$402.020.43%TSMTaiwan Semiconductor Manufacturing Co Ltd$207.50-0.31%TSMWFTaiwan Semiconductor Manufacturing Co Ltd$22.6631.4%Market News and Data brought to you by Benzinga APIs

TSMC Shares in Focus on Return From Holiday After DeepSeek Jolt

Taiwan Semiconductor Manufacturing Co. will be in focus as shares resume trading on Monday after a global selloff in artificial intelligence-linked stocks last week. Investors were caught off-guard by news of Chinese startup DeepSeek's AI model that almost rivaled leading US developers, causing a rout in chip stocks while Taiwan was closed for the Lunar New Year holiday. The US-listed shares of TSMC fell 13% last Monday on the news before recouping some of the losses later in the week.