Market Reaction to DeepSeek's AI Innovation

ASML Holding NV, a pivotal player in the semiconductor equipment sector, experienced a significant stock price drop of over 8% this Monday. This downturn was triggered by the market's reaction to the groundbreaking launch of the R1 model by Chinese AI startup DeepSeek.

DeepSeek's Rise to Prominence

Previously, DeepSeek made headlines by surpassing OpenAI's ChatGPT to claim the top spot on Apple's App Store chart in the United States, pushing the latter to third place. This unexpected triumph of DeepSeek in competing with established Western AI giants has sparked discussions on the viability of current AI investment strategies.

Stock Market Impact

By 9:12 am CET, ASML's shares had plunged 8.56%, trading at €640.70, reflecting the immediate impact of DeepSeek's market disruption.