DeepSeek just took the market by storm, launching a large-language artificial intelligence (AI) model very similar to OpenAI's ChatGPT but at a fraction of the development cost, at least according to the Chinese start-up behind the technology.

Stocks rose Friday as Apple led a broad rally following a strong investor reaction to its quarterly earnings report and the market closes out a whirlwind week highlighted by Nvidia’s record-breaking losses in reaction to China’s DeepSeek cheaper AI model and a flurry of earnings reports.

Global investors staged a broad selloff in technology stocks on Monday, wiping out a staggering $593B in market value from Nvidia — an unprecedented one-day loss for any firm on Wall Street.

A recent sell-off in artificial intelligence (AI) stocks should serve as an important reminder to investors not to ignore valuations. There is a lot of demand for AI-related products and services, and concerns about whether the tech sector is once again overspending on growth are valid.