NANO Nuclear Energy Inc. (NNE) saw its stock price plummet by a staggering 21.87% in pre-market trading on Monday, January 27, 2025. This sharp decline appears to be driven by investor concerns over potential disruption to the demand for advanced computing hardware and AI chips, which are crucial components for NNE's operations in next-generation nuclear technologies.

The catalyst for this sell-off was the release of a powerful new AI model by China's DeepSeek lab, which claimed to have built the system for just $6 million using less expensive chips. If true, this development could undermine the need for costly, high-end chips and systems required for cutting-edge AI applications, potentially reducing future capital expenditures for NNE and other players in the nuclear and energy tech sphere.

DeepSeek's claims have sent shockwaves through the global technology sector, raising questions about America's technological dominance in AI and the validity of sky-high valuations for companies like Nvidia Corp., a leader in AI chips. While the long-term implications of DeepSeek's offering remain uncertain and will depend on its performance and scalability, the news has sparked concerns that major tech firms may have overinvested in AI, leading to a broad sell-off in AI-linked stocks across various sectors, including utilities and energy.