NuScale Power's shares have taken a significant hit as part of a broader sell-off in AI infrastructure-related stocks. The downturn was triggered by the emergence of a new AI model from Chinese startup DeepSeek, which has raised concerns about the competitive landscape in AI technology. DeepSeek's model, noted for its affordability and efficiency on less-advanced chips, has sent shockwaves through the market, particularly affecting U.S. companies involved in AI and related sectors. This development has led to a reevaluation of the competitive dynamics in the AI space, with investors reacting by pulling back from stocks perceived to be at risk.
The sell-off has been widespread, impacting major players in the AI sector, including Nvidia, and has extended to companies like NuScale Power, which are indirectly related to AI infrastructure. The market's reaction underscores the sensitivity of AI-related stocks to shifts in competitive positioning and technological advancements. Analysts have noted that while the immediate impact is negative, the long-term implications for AI infrastructure companies could vary depending on how they adapt to the evolving landscape.
NuScale Power (SMR) shares are currently trading at $23.91, down 14.52% from the previous close of $27.97 on January 24th.