BUZZ-Australian AI-focused stocks tumble after China's DeepSake hits Wall Street

Reuters
01-28
BUZZ-Australian AI-focused stocks tumble after China's DeepSake hits Wall Street

** AI-focused stocks in Australia dropped to multi-week lows after Chinese startup DeepSeek's low-cost AI model sent tech stocks on Wall Street tumbling

** Nasdaq .IXIC fell 3% overnight to log its biggest one-day percentage drop since Dec 18 .N

** Goodman Group GMG.AX, Australia's biggest-listed property developer with a significant exposure to data centres, falls 8.1% to its lowest since mid-September last year

** GMG is the fourth-biggest loser in the ASX200 benchmark index .AXJO

** Brainchip BRN.AX, which makes neuromorphic processors, slipped 15.4%, while data processing firm Appen APX.AX was down 3.7%

** Data centre developers and operators NEXTDC NXT.AX and DigiCo Infra REIT DGT.AX fall around 6% and 11%, respectively

** Citi analyst Siraj Ahmed does not expect DeepSake to impact near-term contracts/demand for NXT, and predicts hyperscalers to continue to deploy capacity

** Tech sub-index .AXIJ is down 1%, vs a largely flat AXJO

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com;))

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