D-Wave Quantum Inc. (QBTS) stock experienced a pre-market plunge of 5.25% on Monday, amid broader concerns over the potential impact of China's DeepSeek AI lab's release of a powerful AI model that could undermine demand for expensive AI chips and related hardware.
The quantum computing company's stock took a hit following reports that DeepSeek claimed to have built a capable AI model for just $6 million, using less-powerful chips. If true, or even partially true, this development could pose a threat to the demand for high-performance and costly chips and equipment used in quantum computing and AI applications.
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 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.
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