Constellation Energy Corp (CEG) stock plummeted 5.08% during intraday trading on Tuesday, following a broader selloff in tech and related sectors on Monday.
The sharp decline appears to be driven by investor concerns over the potential impact of a powerful new AI model released by Chinese startup DeepSeek. This raised fears that U.S. companies may face increased competition in the AI space, leading to sell-offs in chip makers like Nvidia as well as nuclear energy providers like Constellation Energy.
Nuclear energy stocks were caught up in the selloff as they have been positioning themselves as a potential power source for the booming AI industry and its massive computing needs. Concerns around DeepSeek's model and its implications for the future of AI development in the U.S. seem to have spooked investors in this sector.
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