Shares of semiconductor makers were dropping early Monday as a Chinese AI model triggered questions over their lofty valuations.

Semiconductor stocks are getting hit with a wave of bearish pressures following news that the U.S. will take new steps to limit the export of advanced chips used for AI.

David Shaw's D.E. Shaw bought 5.9 million shares of Nvidia, increasing its position by 53%. Nvidia is now the largest holding. Meanwhile, D.E. Shaw sold 8.7 million shares of Palantir, reducing its stake by 45%.

KEY TAKEAWAYS A slew of artificial intelligence stocks, including chip maker Nvidia, are tumbling in premarket trading Monday after Chinese startup DeepSeek released a cutting-edge AI model that runs on less-advanced chips and at a lower cost than U.