Chip Stocks & Oil Prices in Focus as DeepSeek & Hormuz Risks Weigh on Markets

Chip stocks and oil prices drew renewed market attention this week as investors assessed two separate risks: China’s DeepSeek reportedly developing its own AI chip and renewed US-Iran tensions around the Strait of Hormuz. 

CNBC reported on recent equity-market moves, while Reuters said DeepSeek is working on an AI chip, and CNBC separately reported that Brent and WTI were being watched amid Hormuz-related supply concerns.

TL;DR

• DeepSeek’s reported AI chip development added fresh pressure to semiconductor sentiment, affecting names such as NVIDIA, Intel and Applied Materials. 

• Yahoo Finance reported sharp declines in Intel and Applied Materials, while Reuters reported that DeepSeek is seeking to reduce reliance on external AI processors.

• Oil markets were also in focus after CNBC reported that Brent Oil and Oil prices were reacting to US-Iran tensions and concerns around the Strait of Hormuz, a key global energy transit route.

Key developments

Yahoo Finance reported that Intel and Applied Materials fell sharply, while AMD also declined on Tuesday morning, as semiconductor stocks faced renewed pressure. The move highlighted how quickly AI-linked equity sentiment can shift when investors reassess demand, competition or supply-chain risks. (Source: Yahoo Finance)

Yesterday, Reuters reported that DeepSeek (arguably ChatGPT's Chinese rival)  is developing its own AI chip, a move that could intensify scrutiny of the AI semiconductor supply chain and the role of US export controls. The report comes as traders continue to monitor the broader chip sector, including NASDAQ 100 constituents and AI-linked stocks.

CNBC reported that oil prices were rising on Wednesday, as markets tracked US-Iran tensions and the Strait of Hormuz, particularly following Tuesday’s US retaliatory strikes against Iran, which were launched after Tehran targeted commercial vessels in the Strait of Hormuz. The strait is closely watched by energy traders because disruption fears can affect crude supply expectations and short-term volatility in Brent and WTI markets. 

Additional context

The Guardian previously reported that chip stocks had come under pressure as the AI rally showed “signs of fatigue”, with Nasdaq weakness linked to semiconductor declines and concerns around AI-related valuations. Although earlier than this week’s reports, it provides background on how sensitive tech indices have become to chip-sector headlines.  

Conclusion

Chip stocks and oil prices are moving on different but market-relevant risks: DeepSeek’s reported AI chip plans are adding pressure to semiconductor sentiment, while Hormuz-related tensions are keeping energy markets focused on supply risks. For traders, these developments could place technology and crude oil volatility at the centre of the latest market narrative.

*Past performance does not guarantee future results. The above is for marketing and general informational purposes only, and are only projections and should not be taken as investment research, investment advice or a personal recommendation.