(Bloomberg) — A selloff in global technology stocks is causing shockwaves beyond chipmakers and the Magnificent Seven to companies expected to power the sector.
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Independent power producers were the worst-performing stocks in the S&P 500 Index on Monday after an artificial intelligence model from Chinese startup DeepSeek threatened US dominance in the space.
Vistra Corp., which was the top performer in the US stocks benchmark last year, fell as much as 23% for its worst intraday performance since 2021. The drop erased nearly $15 billion in market value. GE Vernova also slid 23% and Constellation Energy sank 19%.
The declines for energy and equipment firms reversed gains that came after US President Donald Trump announced a multibillion-dollar AI project last week.
In Europe, shares of Siemens Energy AG fell 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%.
Oklo Inc., the nuclear fission reactor company backed by OpenAI Inc.’s Sam Altman, fell as much as 25%, having surged more than 60% last week.
The drops exceed 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 Monday’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.
(Updates with Vistra, Constellation trading in New York)
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