The valuations of several Magnificent 7 stocks were hit hard Monday with news of the capabilities of DeepSeek, a Chinese AI that is said to be more cost-effective.
A Benzinga reader poll shows that DeepSeek could hurt one Mag 7 stock the most.
What Happened: Semiconductor leader NVIDIA Corporation (NASDAQ:NVDA) lost around $600 billion in value Monday with shares falling 17%. The company went from being the most valuable in the world to the third most valuable.
The loss of around $600 billion in value marked the largest single-day value drop in U.S. stock history.
Investors were concerned that Nvidia could suffer from a more cost-effective AI model, and the rise of DeepSeek could mean less spending on products from the semiconductor giant.
A Benzinga reader poll found that when it comes to which Magnificent 7 stocks could be the most impacted by DeepSeek, Nvidia wins rather handily.
“Which Magnificent 7 company could be hit hardest by China’s DeepSeek AI platform,” Benzinga asked.
The results were:
- Nvidia: 82%
- Microsoft Corporation (NASDAQ:MSFT): 12%
- Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL): 3%
- Amazon.com Inc (NASDAQ:AMZN): 2%
- Meta Platforms (NASDAQ:META): 2%
- Apple Inc (NASDAQ:AAPL): 0%
- Tesla Inc (NASDAQ:TSLA): 0%
The poll showed Nvidia as the clear winner with 82%, reflecting its status as the steepest decliner among the seven stocks on Monday.
Ranking second was Microsoft, which has become a big investor in the AI sector, including a stake in OpenAI. The capabilities of DeepSeek were quickly compared to OpenAI on Monday and could ramp up a rivalry between the two companies. Microsoft stock fell 2.1% on Monday.
Ranking third was Alphabet with 3% followed by Amazon and Meta at 2%. Tesla and Apple did not receive any responses in the poll, suggesting these companies are potentially less impacted by the rise of DeepSeek.
Read Also: Jensen Huang Loses $20B In Wealth: How DeepSeek Hit Nvidia Stock And World’s Richest People
Why It’s Important: Many technology stocks came roaring back on Tuesday, showing fears of DeepSeek could be overblown.
Nvidia stock was up 8.8% on Tuesday, while Microsoft also gained 2.9%.
The Roundhill Magnificent 7 ETF (NASDAQ:MAGS), which tracks the seven stocks mentioned above, was up 3% on Tuesday. The ETF was down 3.1% Monday.
A separate Benzinga reader poll asked if DeepSeek could drive down the valuation of Magnificent 7 stocks in 2025. The poll found that 57% said yes that valuations could face pressure.
Several leading investment voices called Monday’s selloff of Nvidia stock a buying opportunity.
“To me, it’s an overreaction,” Fundstrat Global Advisors’ head of research Tom Lee said Monday.
Lee compared Monday’s drop to a March 2020 Nvidia stock decline that ended up being a good entry point for investors.
“I’d be looking at this as an opportunity.”
Wedbush analyst Daniel Ives called DeepSeek the “Temu of AI” in a tweet, comparing the Chinese AI to a Chinese ecommerce company that has tried to disrupt Amazon with low prices, but potentially inferior goods.
Ives also questioned the reports that DeepSeek built its AI models without using Nvidia products, saying it was unlikely.
“We expect more innovation in AI/LLM model costs to come down. However, saying DeepSeek was built for $6 million with no Nvidia next generation hardware is likely a fictional story that is at the heart of the debate and drove a massive tech-sell off.”
The analyst hinted that earnings reports from Meta and Microsoft on Wednesday after market close could show the importance of AI in the U.S.
“We expect Meta and Microsoft to reiterate their massive 2025 AI driven Capex numbers of $60 billion-$65 billion and $80 billion respectively with a firm tone.”
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The study was conducted by Benzinga from Jan. 27, 2025 through Jan. 28, 2025. It included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 67 adults.
Image created using photos from Shutterstock.
On Wednesday, Adial Pharmaceuticals (NASDAQ:ADIL) announced the completion of the AD04-103 pharmacokinetics (PK) study for AD04, confirming predictable bioavailability, dose proportionality, no food effect, and a safety profile consistent with ondansetron’s use.
These results enable an End-of-Phase 2 (EOP2) FDA interaction to finalize the Phase 3 trial design and support ongoing partnership discussions.
AD04, a selective 5-HT3 antagonist for Alcohol Use Disorder (AUD), is being developed for patients with a 5-HT3 genomic biomarker and follows a micro-dosing regimen under the FDA’s 505(b)(2) pathway.
Study AD04-103 Highlights:
Cohort 1 (n=6): Assessed PK variability at 0.33 mg and 0.99 mg doses.
Cohort 2 (n=24): Evaluated bioavailability vs. ondansetron 4 mg, dose proportionality, and food effect.
Results confirmed ondansetron exposure increased proportionally across AD04 doses and can be taken with or without food.
Cary Claiborne, CEO, stated, “This study supports our plans to seek FDA approval under the 505(b)(2) pathway. We have engaged with the FDA on the results of this PK bridging study and will incorporate their feedback as we prepare for our End-of-Phase 2 meeting, targeted to take place in the first half of this year. We are excited to achieve this important milestone on the path toward regulatory approval.”
AD04 is designed for patients with specific 5-HT3 receptor mutations (SNPs rs1150226-AG or rs1176713-GG), which may enhance drug binding and efficacy. Adial has developed a Companion Diagnostic Test (CDx) to identify patients most likely to benefit from AD04, which was successfully used in the ONWARD trial and planned for future FDA approval and commercialization.
Price Action: At the last check on Wednesday, ADIL shares were trading higher by 3.73% at $0.86 premarket.
On Wednesday, Intelligent Bio Solutions Inc (NASDAQ:INBS) announced that Quantum Traffic Management, a U.K.-based traffic management provider, has adopted INBS Intelligent Fingerprinting Drug Testing Solution across 10 nationwide sites to increase workplace testing efficiency and safety.
With over 30 years of industry experience, Quantum TM operates across the utilities, highways, rail, local authority, and events sectors.
Previously, Quantum TM relied on saliva and urine testing through external occupational health providers.
However, the delays and inefficiencies associated with these methods prompted the company to explore a quicker and more hygienic alternative.
Also Read: SoFi Q4 Earnings: Lackluster FY25 Profit Outlook Overshadows Performance, Stock Slides
INBS’ fingerprint sweat-based system enables Quantum TM to conduct on-the-spot drug screening in-house, facilitating rapid decision-making and improved operational efficiency.
Quantum TM Managing Director Scott Powell said the Intelligent Fingerprinting Drug Testing Solution provides greater control over drug testing, which it could manage in-house and increase its testing productivity.
INBS Intelligent Fingerprinting Drug Screening System enables organizations to conduct accurate drug screening tests without requiring specialized staff or facilities, the company said in the press release. Its ability to provide rapid on-site results eliminates many challenges associated with traditional testing methods.
With the company’s recent FDA 510(k) submission in December 2024 and plans to enter the U.S. market in early 2025, INBS has the potential to leverage the rapidly expanding global POC drug screening market.
Price Action: INBS stock closed higher by 2.13% to $1.44 Tuesday.
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A new Benzinga reader poll shows a mixed opinion on whether users are headed for the exits of social media platforms in the months since the 2024 presidential election.
While many users are staying on social media platforms, here’s a look at which companies could be most impacted.
What Happened: A recent email from X owner Elon Musk to his staff suggested the social media platform he paid $44 billion for might be seeing slower growth in the months since the 2024 election, which was won by Donald Trump.
“Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even,” Musk said in the email.
The email comes months after Musk highlighted the record usage X saw during the presidential election.
“Over the last few months, we’ve witnessed the power of X in shaping the national conversations and outcomes. We are also seeing other platforms begin to adopt our commitment to free speech and unbiased truth,” Musk also said in the email.
Benzinga recently asked readers if they were considering leaving social media platforms.
“Do you plan to stop using any of these social media platforms in the wake of the 2024 presidential election?” Benzinga asked.
Here are the results:
- I don’t plan to stop using any platforms: 53%
- X (formerly Twitter): 18%
- TikTok: 11%
- Facebook: 8%
- Instagram: 5%
- Reddit: 3%
- Snapchat: 2%
The poll found the majority wasen’t leaving any of the mentioned social media platforms in the wake of the election won by Trump.
The company leading the platform votes was X, which could be in response to its ownership by Musk, a close ally of Trump. Musk has become more outspoken politically on the platform and there could be a belief that he will try to influence X users with his ideals.
Ranking second was TikTok, which faces a pending ban that Trump has paused with an executive order. Facebook and Instagram, which are owned by Meta Platforms (NASDAQ:META) ranked third and fourth, respectively, among social media platforms with a combined 13%. This could be bad news for the company as it could see an exodus of users in the coming months.
Reddit (NYSE:RDDT) and Snap Inc (NYSE:SNAP)-owned Snapchat received a lower percentage of potential users leaving in the poll.
Read Also: Follow Biden Or Harris On Instagram, Facebook? Chances Are You’re Now Following Trump Or Vance
Why It’s Important: The poll saw the majority of users not exiting social media platforms could show that fears of users being influenced by politics and leaving platforms based on who owns them could be overblown.
There were reports that users on Facebook and Instagram could be leaving the platform after Meta’s content moderation changes. Searches for “delete Facebook” and “delete Instagram” have surged on Google in recent weeks, but the poll shows that users might not be ready to leave the platforms yet.
X leads the way for a potential trend of consumers being less happy with the brands associated with Musk as his political efforts ramp up.
Reports showed that users went to alternate platforms like Bluesky after the election, but this poll could show that people never truly left or they didn’t stay on Bluesky.
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The study was conducted by Benzinga from Jan. 25, 2025, through Jan. 27, 2025. It included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 150 adults.
Photo: Farknot Architect/Shutterstock.com
A new Benzinga reader poll shows whether Monday’s selloff of technology stocks could be short lived or a major item to watch with valuations of artificial intelligence companies questioned with the surge of interest in DeepSeek, a Chinese AI company.
What Happened: Monday’s selloff hurt many technology stocks, with companies that deal with semiconductors and the AI sector among the highest impacted names.
Semiconductor leader NVIDIA Corporation (NASDAQ:NVDA) lost around $600 billion Monday, dropping the company from the largest in the world to third largest and marking the largest single day value drop in U.S. stock history.
Here’s a look at how the Magnificent 7 stocks traded Monday:
- Nvidia: -16.86%
- Alphabet Inc (NASDAQ:GOOGL): -4.20%
- Tesla Inc (NASDAQ:TSLA): -2.32%
- Microsoft Corporation (NASDAQ:MSFT): -2.14%
- Amazon.com Inc (NASDAQ:AMZN): +0.30%
- Meta Platforms (NASDAQ:META): +1.91%
- Apple Inc (NASDAQ:AAPL): +3.25%
Overall, the Mag 7 stocks were mixed, with three trading up on the day and four trading down. The large drop for Nvidia hit the Roundhill Magnificent Seven ETF (NASDAQ:MAGS) hard with the ETF down 3.09% Monday.
The SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500, ended Monday down 1.5%.
Benzinga asked readers how serious the threat from China’s DeepSeek could be.
“Will China’s DeepSeek AI drive down the valuation of Magnificent 7 stocks this year?” Benzinga asked.
The results were:
- Yes, it could pressure valuation: 57%
- No, the impact will be minimal: 44%
The poll showed a small majority believing that valuations of Magnificent 7 stocks are now under pressure.
Read Also: Jensen Huang Loses $20B In Wealth: How DeepSeek Hit Nvidia Stock And World’s Richest People
What’s Next: On Tuesday, Magnificent 7 stocks that were down Monday recovered, with the market trading higher and rebounding from the losses.
Here are how the Magnificent 7 stocks traded on Tuesday:
- Nvidia: +8.82%
- Apple: +3.65%
- Meta Platforms: +2.19%
- Microsoft: +2.87%
- Amazon: +1.16%
- Alphabet: +1.70%
- Tesla: +0.24%
The S&P 500 ETF was up 0.86%, and the Magnificent Seven ETF was up 3.0% on Tuesday.
Of the Magnificent Seven stocks, five are positive year-to-date with Nvidia down 8.7% and Apple down 2.0% this year.
Six of the seven Magnificent 7 stocks have outperformed the +23% gain of the SPY over the last year, with Microsoft at +8.8% as the lone exception.
Monday’s selloff could either fade quickly or mark the beginning of significant concerns over valuations. Quarterly earnings results from four of the seven stocks reporting later this week may further intensify the focus on valuations.
Tesla, Meta and Microsoft all report after market close Wednesday, while Apple reports after market close Thursday.
The threat of DeepSeek and other emerging AI technology from China and outside the United States is a development that should be closely watched by investors moving forward.
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The study was conducted by Benzinga from Jan. 27, 2025 through Jan. 28, 2025. It included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 154 adults.
Photo gguy via Shutterstock.
On Tuesday, Intelligent Bio Solutions Inc. (NASDAQ:INBS) announced a partnership with IVY Diagnostics Srl to strengthen its presence in Europe and the Middle East.
IVY Diagnostics serves as Intelligent Bio Solutions’ primary contact in Europe across key regions, including Romania, Hungary, Slovakia, Austria, and Scandinavia. The collaboration extends to the Middle East, targeting markets such as the UAE, Saudi Arabia, and Qatar.
As a key distributor, IVY Diagnostics is integral in expanding the adoption of Intelligent Bio Solutions’ Fingerprinting Drug Testing Solution across Europe and the Middle East, focusing on drug rehabilitation and law enforcement applications.
According to Grand View Research, the European and Middle Eastern drug screening markets are projected to grow significantly by 2030. Europe is expected to reach $3.6 billion, and the Middle East and Africa $432.7 million.
IVY Diagnostics has collaborated with another Italian distributor to secure a tender to provide Intelligent Bio Solutions’ drug screening technology for drug rehabilitation programs across Italy.
The solution offers a non-invasive, rapid, and hygienic method for drug screening, which has been well received by rehabilitation centers aiming to enhance their testing protocols.
Intelligent Bio Solutions’ drug screening system is currently undergoing a trial with the local police force in Turin.
The trial aims to explore the effectiveness of fingerprint-based drug testing in roadside screening initiatives, offering a more efficient, less invasive alternative to the traditional methods currently used.
In December, Intelligent Bio Solutions submitted its 510(k) premarket notification to the FDA for clearance following the FDA review of its Intelligent Fingerprinting Drug Screening System.
The company plans to enter the US market with its drug testing solution in 2025.
Price Action: INBS stock closed at $1.41 on Monday.
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