Anant Raj Shares Plunge Nearly 20% Amid Global AI Market Shakeup
The stock market witnessed a sharp decline in technology-related shares on January 28, 2025, as Anant Raj shares nosedived by nearly 20% to an intraday low of Rs 536.05 on the BSE. This sudden drop comes amid growing fears surrounding the emergence of low-cost Chinese artificial intelligence (AI) models, which are disrupting the global AI industry.
Why Are Anant Raj Shares Falling?
Anant Raj, primarily known for its real estate ventures, has also diversified into the data center industry through its subsidiary, Anant Raj Cloud. The company has made significant strides in AI technology, especially after announcing a collaboration with Google in July 2024 to develop AI-driven solutions aimed at enhancing infrastructure, security, and productivity.
However, the recent launch of a free AI assistant by Chinese startup DeepSeek has sent shockwaves across the industry. DeepSeek claims its AI model operates at a fraction of the cost of existing solutions, making it a formidable competitor to established AI firms. The AI assistant has already surpassed OpenAI’s ChatGPT in downloads on Apple’s App Store, signaling a major shift in the competitive landscape.
Global Impact on Tech Stocks
The growing concern over China’s AI advancements has led to a broad-based sell-off in technology stocks worldwide.
Nvidia, one of the biggest players in AI chip manufacturing, saw a massive $592.7 billion wiped off its market value.
The Nasdaq Composite Index tumbled by 3.1% on Monday as major tech firms, including Nvidia, Broadcom, and Philadelphia, faced heavy selling pressure.
Investors are now cautious about the future of AI investments, fearing that high-cost AI models may struggle to compete with emerging cost-effective alternatives.
Anant Raj’s Stock Performance
Despite its recent slump, Anant Raj’s stock has delivered impressive returns over the past year, surging by 69.24%. However, the short-term trend tells a different story:
Down 38.29% in the last week
Down 35.57% over the past two weeks
Down 35.14% in the last month
Down 21.46% over the past three months
What’s Next for Investors?
The ongoing AI price war is reshaping the global tech landscape, forcing investors to reevaluate their positions in AI-driven stocks. While Anant Raj Cloud has positioned itself as a key player in the AI and data center industry, the competition from cost-efficient AI models could pose challenges to its growth.
Market experts suggest that investors should closely monitor developments in the AI sector and assess how companies like Anant Raj adapt to these disruptions. As AI technology continues to evolve, only those firms with strong innovation and adaptability will thrive in the long run.
Final Thoughts
Anant Raj’s stock plunge highlights the uncertainty in the AI market as new competitors enter the space. While the company has a solid foundation in real estate and data centers, the growing influence of low-cost AI models could impact its future growth trajectory. Investors should remain vigilant and make informed decisions based on upcoming market trends and industry developments.
Reference from:-https://economictimes.indiatimes.com/markets/stocks/news/anant-raj-shares-nosedive-nearly-20-amid-global-fears-of-low-cost-ai-models/articleshow/117619327.cms?from=mdr