Broadcom’s business relies heavily on their networking products, which are crucial for data transfer in AI systems. If the market for premium AI chips experiences a downturn, amid the rise of DeepSeek, it could create a domino effect, potentially hurting sales of Broadcom’s supporting technologies and components.

Here’s what you need to know about DeepSeek, the Chinese AI startup that rattled markets as its app dethroned OpenAI's as the most-downloaded free app in the U.S. on Apple.

DeepSeek is shaking up the AI industry with cost-efficient large language models it claims can perform just as well as rivals from giants like OpenAI and Meta. The Chinese startup says its flagship R1 reasoning model is capable of achieving “performance comparable” to OpenAI’s o1 equivalent,