Constellation Energy Corp (CEG) saw its shares tumble 5.02% on Monday, underperforming the broader market in a selloff triggered by concerns over the rapid progress made by China's AI startup DeepSeek.
The plunge in CEG's stock came as part of a wider decline in energy and chip stocks. Small-cap energy firms like Nano Nuclear Energy (down 12%) and NuScale Power (down 7.8%) were among the hardest hit, while semiconductor stocks represented by the SOXL ETF plummeted 8%.
The selloff was fueled by reports that DeepSeek had developed a powerful AI model at a fraction of the cost typically associated with such technology, raising doubts about the investment case for the entire AI supply chain. Analysts noted that DeepSeek's progress could potentially undermine demand for expensive AI chips and gear from industry leaders like Nvidia, which has been a key beneficiary of the AI stock boom.
