NANO Nuclear Energy Inc (NNE) stock plunged 15.3% in the pre-market session on Sunday, underperforming the broader market. The sharp sell-off in the nuclear energy company seems to be driven by concerns over potential disruption to demand for advanced computing hardware and AI chips.

The catalyst 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.

As a company pioneering next-generation nuclear technologies, NNE relies heavily on advanced computing capabilities, including AI and high-performance chips. The prospect of cheaper AI solutions could potentially reduce future capital expenditures for NNE and other players in the nuclear and energy tech sphere. However, the long-term implications remain uncertain and will likely depend on the performance and scalability of DeepSeek's offering.