NANO Nuclear Energy Inc's stock plummeted 5.11% on Tuesday, caught up in a steep selloff that impacted nuclear power stocks across the board. The sell-off was driven by fears that China's newly launched DeepSeek AI model could challenge the narrative surrounding the growth prospects of the AI industry, which has been a key driver for nuclear power companies positioning themselves as potential energy providers for AI data centers.
The selloff in NANO Nuclear Energy's shares came despite a broader rebound in tech stocks like Nvidia, Broadcom, and Marvell in the pre-market session, as investors appeared to be reassessing the potential impact of DeepSeek on the AI landscape. Nevertheless, nuclear power stocks like NANO Nuclear Energy, NuScale Power, and Vistra Energy tumbled, with some analysts suggesting that concerns about the AI startup DeepSeek were battering this sector of the energy market.
While the long-term implications of DeepSeek's launch remain unclear, the sharp selloff in NANO Nuclear Energy's stock highlights investor concerns about potential disruptions to the AI industry's growth trajectory, which could impact the company's prospects as a potential energy provider for AI data centers.
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