ETFs show mixed results following DeepSeek AI stock selloff
The recent launch of DeepSeek's AI model has caused varied performance among exchange-traded funds (ETFs) focused on AI stocks. While some funds thrived, others suffered due to shifts in the AI value chain. Funds that invested in software companies, like ProShares Big Data Refiners ETF and TrueShares Tech, AI, and Deep Learning ETF, saw gains of 4.1% and 3.4%, respectively. These funds benefited from lower computational demands in AI development. In contrast, funds with heavy investments in AI hardware, such as VistaShares Artificial Intelligence Supercycle ETF and Pacer Data and Digital Revolution ETF, experienced declines of 6.9% and 5.9%. Major hardware companies like Nvidia faced significant losses, impacting overall fund performance.