Tech Stocks Rebound as Investors Shake Off AI Fears
European Semiconductor Stocks Lead the Charge
A surprising surge in new bookings by Dutch-listed ASML, a leading manufacturer of computing chip-making tools, sent European technology stocks soaring on Wednesday. The company’s shares jumped nearly 10%, fueling a broader recovery in artificial intelligence-linked stocks that had taken a beating earlier in the week.
US Peers Follow Suit
Across the Atlantic, US-based Applied Materials, Lam Research, and KLA Corp saw their shares rise between 3.8% and 4.3% in premarket trading. Nvidia, the dominant player in the AI chip market, also saw its shares edge higher, although they remained well below their recent record high.
Nasdaq Futures Point to Further Gains
Nasdaq futures were up 0.4% by early morning, suggesting the cash index could extend its 2% rise from the previous day. An index of European tech stocks was up nearly 4%, heading for its biggest one-day jump in a year.
DeepSeek’s AI Tools Sparked Market Volatility
The emergence of DeepSeek’s low-cost AI tools had sparked a selloff in AI-linked stocks on Monday, wiping billions in market value off Nvidia and other technology companies. The sudden appearance of a potential challenger to industry leaders like OpenAI’s ChatGPT had raised concerns about rapidly dropping development costs.
Market Calm Returns Ahead of Earnings
By Wednesday, however, investors had regained their composure, focusing on upcoming earnings reports from US megacaps like Nvidia, Apple, and Microsoft. The market seemed to be betting that DeepSeek’s innovation would not disrupt the AI capital expenditure cycle and could even create new demand for graphics processing units.
Microsoft and OpenAI Investigate Data Misuse
In a separate development, Microsoft and OpenAI were probing allegations that data output from OpenAI’s technology had been improperly used by a group linked to DeepSeek. The investigation added a new layer of complexity to the rapidly evolving AI landscape.
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