NuScale Power, a small nuclear energy company, saw its stock plummet 14.05% in pre-market trading on Monday. This sharp decline came amidst broader concerns over potential disruptions to the AI chip supply chain.
The sell-off was sparked by reports of a Chinese AI startup called DeepSeek developing a powerful AI model that could run on less advanced and cheaper chips. If true, this development could undermine the demand for expensive AI chips and related hardware, which has fueled a surge in valuations for companies like Nvidia.
As a small nuclear energy player, NuScale Power's fortunes are indirectly tied to the AI chip market through its reliance on advanced computing power for its operations and technology development. The concerns over DeepSeek's progress rattled investor confidence in the company, leading to the steep pre-market decline.
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