On January 27, 2025, U.S. markets opened sharply lower, with the Dow Jones Industrial Average down 0.39%, the Nasdaq Composite plunging 3.01%, and the S&P 500 declining 1.81%. The tech-heavy Nasdaq led the losses, reflecting investor concerns over the artificial intelligence sector.

In sector performance, semiconductor stocks experienced significant declines, with NVIDIA dropping 10.39%, Broadcom falling 11.92%, and Taiwan Semiconductor Manufacturing down 9.54%. The selloff was triggered by the emergence of China's DeepSeek AI model, which raised concerns about U.S. dominance in the AI industry and the future demand for advanced chips.

NVIDIA saw a sharp decline of 10.39% after the launch of DeepSeek's low-cost AI model, which uses cheaper chips and less data. This development has shaken investor confidence in the AI sector, raising questions about the future profitability of high-cost AI chipmakers.

Microsoft fell 4.35% as DeepSeek's AI model sparked concerns over the valuation of Big Tech companies. Despite the upcoming earnings report on January 29, which is expected to show revenue growth of 11.1%, the market remains cautious about the company's future in the AI space.

Alphabet and Alphabet dropped 3.46% and 3.60%, respectively, as the DeepSeek model outperformed leading AI products in multiple tests. However, Needham maintained its "Buy" rating on Alphabet and raised its price target to $225.00, reflecting confidence in the company's long-term prospects.

Apple gained 1.75% despite the broader tech selloff. Investors are focusing on the company's upcoming earnings report on January 30, with expectations of 3% revenue growth driven by its services segment.

Dada Nexus surged nearly 32% in premarket trading after receiving a non-binding acquisition proposal from JD.com at $2.00 per ADS, representing a 42% premium over its previous closing price.

Tesla Motors declined 2.20% as the company is projected to sell 2.07 million vehicles this year, falling short of Elon Musk's earlier predictions.

Micron Technology dropped 8.69%, reflecting broader concerns in the semiconductor sector following the DeepSeek announcement.

SoFi Technologies fell 9.88% after issuing mixed guidance for Q1 2025, with revenue expectations exceeding analyst estimates but adjusted EBITDA falling short.