BUZZ-AI-linked stocks tumble after China upgrades low-cost, low-power AI model

Updates

** Shares of U.S. AI stocks fall in premarket trade after surging popularity of Chinese discount AI model wobbles investors' faith in the technology's profitability

** Startup DeepSeek rolled out a free assistant it says uses lower-cost chips and less data, sparking worries about profits of rivals and the need for costly tech

** Dominant AI chipmaker Nvidia NVDA.O down 11.8%, AI server maker Super Micro SMCI.O down 8.9% and Dell DELL.N down 7.2%

** Broadcom AVGO.O down 13%

** Microsoft MSFT.O down 5.9%, Alphabet GOOGL.O down 3.8%, Meta META.O down 4%, and Oracle ORCL.N down 6.4%

** Chipmaker Marvell Technology MRVL.O and Advanced Micro Devices AMD.O fall 14.8% and 4.6%, respectively

** Shares of chip-making equipment companies down; Applied Materials AMAT.O down 5%, Lam Research LRCX.O down 5.4% and KLA Corp KLAC.O down 4.3%

** Palantir Technologies PLTR.O falls 5.9%

** Smaller AI stocks C3.ai AI.N down 6% and BigBear.ai BBAI.N down 5.1%

** Energy firms, which plan on powering AI data centers, fall: Vistra VST.N and Constellation Energy CEG.O down 12.3% and 12.7%, respectively

** U.S.-listed shares of Arm Holdings ARM.O and TSMC TSM.N fall 10% each