Netweb Technologies Shares crash 50% as DeepSeek Disrupts Market

Netweb Technologies shares have fallen 50% from their peak of ₹3,060 in November. On January 28, the stock dropped another 10% to ₹1,460.35. This decline is primarily due to Chinese AI start-up DeepSeek, which has disrupted the market with cost-effective AI models. Concerns over DeepSeek’s rise have led to significant sell-offs in tech stocks. Nvidia’s shares fell 17% overnight, impacting Netweb due to their partnership with Nvidia for advanced GPU systems.

Netweb also faced challenges as 20% of its equity shares became eligible to trade after a lock-in period expired, raising fears of further sell-offs. Despite setbacks, Netweb’s management stood by their FY25 revenue guidance of ₹1,000 crore and an annual revenue CAGR of 30-35%.

The broader tech market remains volatile as investors adjust to new AI advancements, with companies like DeepSeek leading the charge.