U.S. Tech Stocks Hit by Chinese AI Model GLM5.2, Micron Falls 7% This Week

According to Jefferies and Morgan Stanley, U.S. tech stocks faced significant selloff this week as investors reassess the impact of China's low-cost AI models on the industry. The GLM5.2 model, recently launched by Zhipu, delivers performance nearly comparable to Anthropic's flagship model but at approximately one-quarter the inference cost per token.

On Friday, Micron Technology fell over 7%, while AMD and Intel declined more than 4%. Oracle dropped roughly 19% over five trading days. Analysts describe the shift as "another DeepSeek moment," noting that as AI model capabilities converge, enterprises increasingly prioritize cost efficiency over raw performance. Morgan Stanley reports that demand is "clearly tilting toward lower-cost models," potentially pressuring growth expectations for NVIDIA's supply chain, cloud platforms, and AI data center infrastructure investments.