Following a painful selloff at the beginning of the week due to China’s low-cost DeepSeek artificial intelligence technology, chip stocks in the US and Europe increased Wednesday for a second consecutive day.<\/p>\n
However, Nvidia’s stock fell 2.7% to $125.44, which had an impact on the Nasdaq. Although the stock closed Tuesday’s trading session 8.9% higher, it was still well below Friday’s close of $142.62 and the January 7 record high of $153.13.<\/p>\n
The roughly 8% increase in ASML following the Dutch semiconductor equipment manufacturer’s announcement of an unexpectedly high increase in new bookings contributed to the spike in European tech equities.<\/p>\n
ASML drove a 3.2% increase in an index of European tech companies, while chipmakers BE Semiconductor and ASM International saw 3.5% and 5.4% increases, respectively.<\/p>\n
US peers including Applied Materials, Lam Research, and KLA Corp saw more moderate gains, rising between 0.9% and 2%. There was a 0.1% increase in the Philadelphia chip index.<\/p>\n
The appearance of DeepSeek’s AI tools as potential rivals to industry leaders like OpenAI’s ChatGPT, along with the indication that development costs may be rapidly declining, hurt AI-related stocks on Monday and depleted the market value of semiconductor, power, and equipment companies by almost $1 trillion.<\/p>\n
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