Deepseek’s Launch Market Reaction on American Techology Sector Issuers

DOI

10.2991/978-94-6463-994-0_38How to use a DOI?

Keywords

abnormal return; event study; trading volume; artificial intelligen

Abstract

This research aims to examine the impact of the launch of DeepSeek - an AI chatbot developed in China - on the stock performance of technology companies in the Nasdaq 100 index. DeepSeek, launched by the company High-Flyer on January 20, 2025, coinciding with the inauguration of the 47th US President Donald J. Trump, is seen as a geopolitical and technological threat to American technological dominance. Using the event study method, this study analyzed the abnormal returns (AR) and trading volume activity (TVA) of 11 major technology companies with the largest market capitalization value in America in the time window of t-10 to t+10, The results showed that there were consistent and significant negative abnormal returns before, during, and after the event, In addition, abnormal trading activity also increased significantly, indicating high investor attention and anxiety. These findings confirm that the launch of DeepSeek was a disruptive event that affected investor perceptions, not only at the individual stock level, but also in the context of global AI competition. This study contributes to the literature on market efficiency, behavioral finance, and international technology competition, and provides empirical insights into how innovations from emerging economies can affect markets in developed economies.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Wildan Alkhairi
AU  - Olga Yulia
AU  - Rafie Ahmad Ghanie Satmoko
AU  - Nikmah Nikmah
PY  - 2026
DA  - 2026/02/23
TI  - Deepseek’s Launch Market Reaction on American Techology Sector Issuers
BT  - Proceedings of the 24th Malaysia-Indonesia International Conference on Economics, Management, and Accounting (The 24th MIICEMA) in conjunction with The 9th Sriwijaya Economics, Accounting, and Business Conference (The 9th SEABC) (MIICEMA-SEABC 2025)
PB  - Atlantis Press
SP  - 559
EP  - 577
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-994-0_38
DO  - 10.2991/978-94-6463-994-0_38
ID  - Alkhairi2026
ER  -