Finance & BusinessAI

Chip Stocks Recover After DeepSeek’s AI Shock

19
DeepSeek

Semiconductor stocks in the U.S. and Europe rebounded for a second day after DeepSeek’s AI launch caused a major selloff in tech shares earlier this week.

Tech Stocks See Gains

  • Nvidia’s stock fell 0.4% in premarket trading to $128.05 after a strong 8.9% rise on Tuesday. However, it remains well below its Friday close of $142.62 and its record high of $153.13 earlier this month.
  • European tech stocks climbed 3.7%, led by ASML’s 8% surge after the company reported strong new bookings.
  • U.S. chip companies Applied Materials, Lam Research, and KLA Corp gained between 3.8% and 4.3%.
  • Nasdaq futures rose 0.4%, pointing to a possible extension of Tuesday’s 2% rally.

DeepSeek’s AI Disrupts the Market

  • DeepSeek’s AI tools raised concerns about falling development costs, putting pressure on AI-linked stocks.
  • The selloff wiped nearly $1 trillion from semiconductor, power, and equipment companies on Monday.
  • Nvidia suffered the biggest loss, dropping 17% in one day and losing $600 billion in market value—the largest single-day drop for any company in history.

Investor Focus Shifts to Earnings

  • Markets calmed on Wednesday as investors turned their attention to earnings reports from big tech firms.
  • Microsoft and Meta are set to report quarterly results, which could provide insights into AI investment trends.
  • Analysts believe that AI spending will be key in maintaining growth for major tech companies.

DeepSeek Faces Questions

  • Some experts doubt DeepSeek’s claims, especially regarding its spending and computing power.
  • Microsoft and OpenAI are investigating whether DeepSeek improperly used ChatGPT technology.

As the AI battle heats up, investors are watching closely to see if semiconductor stocks can fully recover from DeepSeek’s disruptive impact.

Written by
Saif Kabir

I've always been passionate about tech, gadgets, and anime, which is why I started writing blogs. In my free time, I dive into graphic design and explore the latest trends in technology, sharing insights with fellow tech enthusiasts.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

DeepSeek
AI

DeepSeek Rolls Out Powerful AI Update, But Everyone Missed It

Earlier this week, Chinese AI lab DeepSeek quietly released an upgraded version...

Sundhar Pichai Google
AITech

CEO Sundar Pichai Says AI Will Help Google Grow, Not Cut Jobs

Alphabet CEO Sundar Pichai said that artificial intelligence (AI) will not lead...

Lucy Guo
Finance & Business

30-Year-Old College Dropout Tops Taylor Swift as Youngest Self-Made Female Billionaire

Taylor Swift is no longer the world’s youngest self-made female billionaire. The...

Google AI Edge Gallery
AIApps & Updates

Google Just Dropped an AI App That Works in Airplane Mode

Google has quietly launched a powerful new AI app that works even...