Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
The tech world was stunned when Nvidia, the leading AI chip manufacturer, lost an unprecedented USD 600 billion in market value in a single day—the largest one-day loss in US stock market history.
This seismic shift was triggered by the emergence of DeepSeek, a Chinese AI company, alongside former President Donald Trump’s announcement of a massive USD 500 billion AI infrastructure project called Stargate.
The Nasdaq Composite dropped 612 points (3%), while the S&P 500 fell 1.5%, highlighting the broad impact of these developments on the technology sector.
Understanding the DeepSeek phenomenon
DeepSeek burst onto the scene by becoming the most downloaded free app on Apple’s US App Store, but its impact goes far beyond app rankings. The company claims to have developed its AI model for just USD 6 million, compared to the estimated USD 100 million to USD 1 billion spent by competitors like Anthropic.
This dramatic cost difference sent shockwaves through the market, pushing Nvidia’s value from USD 3.5 trillion to USD 2.9 trillion, dropping it to third place behind Apple and Microsoft.
The company’s founder, Liang Wenfeng, manages an USD 8 billion hedge fund called High-Flyer, indicating deeper financial resources than initially reported. DeepSeek operates with a lean team of fewer than 140 people, primarily recruiting PhD students from elite Chinese universities rather than experienced engineers.
The immediate market reaction affected multiple sectors. Beyond Nvidia’s decline, ASML fell 6%, Broadcom dropped 17%, and energy companies like GE Vernova and Vistra saw declines of 21% and 28% respectively. Even Japanese AI-related firms weren’t spared, with the Nikkei 225 index falling 1.4%.
Trump’s Stargate project: A new direction
The Stargate project represents America’s response to these challenges, with an initial USD 100 billion investment scaling up to USD 500 billion.
The initiative brings together tech giants OpenAI, Oracle, and SoftBank, focusing on building massive AI infrastructure. The centrepiece includes a million-square-foot facility in Texas, marking the beginning of a nationwide data centre network.
Beyond job creation (100,000 new positions), the project addresses critical infrastructure needs. Industry leaders have highlighted the increasing demand for data centres, chips, electricity, and water resources to sustain AI growth. Sam Altman, OpenAI’s CEO, has described Stargate as the “most important project of this era.”
Investment landscape changes
For investors, these developments signal several key shifts in the technology sector:
1. AI development costs: DeepSeek claims to use just 2,000 specialised chips compared to an estimated 16,000 chips for leading US models, challenging traditional cost assumptions.
2. Semiconductor industry: While Nvidia remains dominant, concerns have emerged about chip supply. SK Hynix, a crucial supplier of high-bandwidth memory chips, has raised concerns about demand trends, while Taiwan Semiconductor expects to double its AI-related revenue.
3. Infrastructure players: KeyBanc has adjusted Nvidia’s 2026 data centre revenue target to USD 185 billion from USD 200 billion, reflecting changing market dynamics.
4. Cloud computing: Microsoft’s significant role as 13% of Nvidia’s fiscal Q1 revenue highlights the interconnected nature of the AI ecosystem.
Risks and challenges
Investors should consider several risk factors:
Geopolitical tensions: New US regulations limit AI chip exports to 50,000 per country, with stricter controls for orders exceeding 1,700 chips.
Technical uncertainties: Manufacturing yield issues are limiting shipments of Nvidia’s next-generation Blackwell chips.
Regulatory environment: China’s State Administration for Market Regulation is investigating Nvidia for potential antitrust violations.
Market valuation concerns: Oracle executive Ken Glueck estimates that export restrictions could reduce the global market for US chip companies by 80%.
Tech sector outlook 2025: AI’s ripple effect
The AI revolution is reshaping the broader technology sector in several significant ways:
1. Shifting power dynamics: The traditional dominance of US tech giants is being challenged by efficient, low-cost competitors. Companies like DeepSeek demonstrate that innovation can come from unexpected places, forcing established players to rethink their strategies.
2. Infrastructure revolution: Data centre development is becoming as crucial as software development. The industry is seeing a massive shift towards sustainable, energy-efficient infrastructure solutions, particularly as AI power consumption concerns grow. UBS analysts predict this will create new opportunities in green tech and energy management systems.
3. Democratisation of AI: Lower development costs are making AI more accessible to smaller companies and startups. This trend could lead to:
Increased competition in previously consolidated markets.
More specialised AI applications for specific industries.
Growing demand for AI integration services.
New opportunities in AI training and deployment tools.
4. Market restructuring: The tech sector is moving away from pure software plays toward integrated hardware-software solutions. Companies that can offer complete AI implementation packages, from chips to applications, are likely to gain advantages.
5. Talent market changes: With companies like DeepSeek successfully operating with smaller, specialised teams, the industry is seeing a shift in hiring practices. The focus is moving towards highly skilled specialists rather than large development teams.
Practical takeaways for investors
For investors, several strategies merit consideration:
1. Diversification: Look beyond chip manufacturers to include companies throughout the AI value chain, including infrastructure providers and energy companies.
2. Timeline management: UBS analysts predict strong Q4 and fiscal Q1 results for the sector, but suggest monitoring Blackwell chip yields and revenue growth.
3. Risk assessment: Consider the impact of potential tariff increases (2-5% per month) and regulatory changes on international tech investments.
4. Market indicators: Watch data centre construction rates, chip shipments (particularly the transition to Blackwell chips), and energy consumption patterns in tech hubs.
These developments suggest we are entering a new phase in AI investment, where efficiency and infrastructure take centre stage. Investors should maintain a balanced approach, considering both the opportunities and risks in this rapidly evolving sector.
To capitalise on emerging trends in AI and beyond, open a live account with VT Markets today and access a world of investment opportunities.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
January 27, 2025 – Sydney, Australia – VT Markets celebrates an exhilarating year of record-breaking growth and high-impact achievements in 2024. From a remarkable jump in trading volume to groundbreaking partnerships, this year has marked a transformative year for the global brokerage leader.
VT Markets was celebrated for its excellence over 30 global and regional accolades, and prestigious industry appearances, further solidifying its position as a trailblazer in the trading world. The firm also earned the coveted Approved Broker Member status from the Financial Commission, a prestigious recognition of its trustworthiness and transparency in the industry.
2024: A Year of Unprecedented Growth
Global Workforce Explosion: VT Markets soared to over 600 employees across 27 offices worldwide, scaling operations and bringing unparalleled support to traders across the globe.
Record-Breaking Trading Volume: The firm’s trading volume reached an astonishing 150% year-on-year growth, demonstrating the trust and momentum VT Markets has garnered within the trading community.
Skyrocketing Client Engagement: With a two-fold growth in gross deposits and first-time trades respectively VT Markets has seen its customer base and trading activity grow to new heights. The numbers speak for themselves – traders are flocking to VT Markets in record numbers, fueling its expansion and global success.
Trailblazing Achievements & Partnerships
2024 saw VT Markets continue to build on its legacy with some of the most exciting and high-profile achievements in the company’s history:
Partnership with Maserati MSG Racing: VT Markets raced ahead with its continued partnership with Maserati MSG Racing for Season 11 of the Formula E World Championship, linking high-performance motorsport with the world of trading. A dynamic collaboration that champions innovation and speed, it embodies the core values of VT Markets.
Strategic Partnership with Newcastle United: In an exciting move that amplified its global presence, VT Markets teamed up with Newcastle United in August, marking a major milestone in the brand’s commitment to world-class sports partnerships.
Client Fund Protection: Taking security to the next level, VT Markets introduced client fund insurance up to $1M, offering traders an unparalleled sense of safety and trust in the platform.
“Built for Winners” Brand Campaign: VT Markets launched the captivating “Built for Winners” campaign, highlighting the parallels between navigating volatile markets and racing on the high-speed track. This bold creative campaign struck a chord with traders, positioning VT Markets as the firm that helps individuals and institutions thrive in challenging environments.
“Trading Can Be Easy” Ad Campaign: VT Markets launched its first hyper-localised ad campaign tailored specifically for South Asia, showcasing how easy trading can be and how it can transform lives in India. The campaign resonated deeply with local audiences, changing the narrative on what is possible in trading.
The Road Ahead: VT Markets’ Vision for 2025
Building on the tremendous success of 2024, VT Markets is primed for greater expansion in 2025, with bold plans to continue setting new standards in the brokerage industry including doubling down in key regions like Southeast Asia and Central Asia for rapid growth and further establishing its global leadership. As we look ahead, we are optimistic about the outlook for forex and trading, with a market poised for both opportunities and challenges. By leveraging our advanced technology, global reach, and customer-centric approach, VT Markets is confident to navigate these evolving market dynamics and ride the wave of success together with our valued clients and partners.
About VT Markets
VT Markets is a regulated multi-asset broker with a presence in over 160 countries as of today. It has earned numerous international accolades including Best Online Trading and Fastest Growing Broker. In line with its mission to make trading accessible to all, VT Markets offers comprehensive access to over 1,000 financial instruments and clients benefit from a seamless trading experience via its award-winning mobile application.
For more information, please visit the official VT Markets website or email us at info@vtmarkets.com. Alternatively, follow VT Markets on Facebook, Instagram, or LinkedIn.
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Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
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