GE Vernova Inc. (GEV), a leading power generation and energy technology company, saw its stock plummet 5.08% in pre-market trading on Monday, following concerns about the potential impact of low-cost artificial intelligence (AI) models on its business.
The decline came after the emergence of DeepSeek, a Chinese AI company that unveiled low-cost AI models, sparking fears among investors about potential disruption to traditional power and energy sectors. Shares of several major power groups, including GE Vernova, Vistra, and Constellation Energy, experienced significant declines as investors reassessed the potential risks posed by AI innovation.
While the long-term implications of DeepSeek's AI models on GE Vernova's operations remain uncertain, analysts suggest that the stock price drop reflects investor concerns about the potential erosion of profitability and market share due to the rapid advancement of AI technologies. As AI continues to evolve and become more accessible, traditional energy companies may face challenges in maintaining their competitive edge and adapting to the changing landscape.
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