DeepSeek's Disruption: AI Shake-up in Global Markets

Chinese startup DeepSeek's innovative AI model caused a seismic shift in the global chipmaking market, notably impacting Nvidia's valuation. While European markets remained relatively unscathed, the ripple effects touched major global players like SAP and ASML. Upcoming earnings and policy meetings add to the tumultuous market atmosphere.

In a surprising market twist, Chinese startup DeepSeek has emerged as a formidable challenger, sending shockwaves across the global chipmaking industry. The company's cost-effective AI model significantly impacted Nvidia, wiping nearly $600 billion off its value, and causing concern among AI-ancillary businesses reliant on high-growth forecasts.

European markets, meanwhile, found a silver lining as their limited exposure to colossal tech names shielded them from severe repercussions. German software giant SAP weathered Monday's turbulence by surpassing earnings expectations, suggesting that AI-driven cloud growth could be a path forward, though facing traders' scrutiny.

As eyes turn to upcoming earnings reports from industry giants such as Boeing, Meta, and Microsoft, and crucial policy meetings in the US and Europe, the market remains on tenterhooks. Analysts are closely watching to see if DeepSeek's competitive pricing will influence AI investment strategies among leading tech companies.

(With inputs from agencies.)