D-Wave Quantum Inc. (QBTS) stock plummeted by 7.22% in pre-market trading on Monday, amid broader concerns that a powerful new AI model released by China's DeepSeek AI lab could potentially undermine demand for expensive AI chips and related hardware used in quantum computing and artificial intelligence applications.
The quantum computing company's shares took a significant hit following reports that DeepSeek claimed to have built a capable AI model for just $6 million, using less-powerful chips. If these claims are true, or even partially true, this development could pose a threat to the demand for high-performance and costly chips and equipment utilized in quantum computing and AI systems.
Alongside D-Wave Quantum, other quantum computing stocks, including SEALSQ, Quantum Computing, Rigetti Computing, and IONQ, also experienced declines in overnight trading, reflecting broader concerns within the sector. The news also weighed heavily on chip stocks, with the SOXL index falling 8%, and major players like Marvell, ARM, Nvidia, Broadcom, TSMC, and Super Micro all seeing notable drops.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.