The Chinese AI service has Wall Street worried that it will be cheaper than expected to develop models. But as chip stocks sink, some analysts see a silver lining.

Panic is hitting Wall Street on Monday morning, with major semiconductor stocks like Nvidia (NVDA) and Broadcom (AVGO) down more than 10%. The reason for the chaos is DeepSeek, a new artificial intelligence (AI) model released by a Chinese startup.

Instead, it comes from what appears to be an Nvidia consumer, Chinese AI service provider DeepSeek. It works well, jumping to number-one in Apple’s U.S. App store, but the issue is less the performance and more the training behind it.