TEMPER THE RISK IN YOUR TECH STOCKS

A recent rout in AI stocks has some investors thinking more defensively.

- BY ANNE KATES SMITH

AS it turns out, DeepSeek, the new Chinese artificial-intelligence app, did not deep-six the stock market—at least not for long. But it may have reshaped the perception of what the rollout of AI will look like in coming years, and it might have you thinking you need to reshape your portfolio, too.

The late-January rout caused by DeepSeek’s arrival in the U.S. was ferocious, if short-lived. News of the cheaper, open-source AI model sent chipmaker Nvidia spiraling to a 17% loss that shaved nearly $600 billion in market value—a one-day record. Utilities powering the AI boom, including Vistra and Constellation Energy, also tanked. AI-related stocks remained volatile, even as some experts noted that, although AI beneficiaries (and their stock market leadership) may evolve over time, the technology will remain a dominant force in the economy and financial markets.