Chinese AI Bot Sparks Tech Selloff

Chinese AI Bot Sparks Tech Selloff 

Top chip stocks including Nvidia [NVDA] and ASML [ASML] plummeted Monday, after Chinese artificial intelligence (AI) start-up DeepSeek’s latest model seemed to provide a comparable service to those of US-based competitors — at a fraction of the price. “Concerns have immediately emerged that it could be a disruptor to the current AI business model, which relies on high-end chips and extensive computing power and hence energy,” Jefferies analysts said in a note to clients seen by Bloomberg.

Big Week for Earnings: What to Watch For 

Earnings season gets well underway this week, with a major focus on the reports of four of the ‘magnificent seven’, namely Meta Platforms [META], Microsoft [MSFT] and Tesla [TSLA] (on Wednesday), and Apple [AAPL] (on Thursday). Elsewhere in the tech space, investors will be paying attention to reports from Lam Research [LRCX], RTX Corporation [RTX], SoFi Technologies [SOFI] and ServiceNow [NOW]. 

Tesla May Not Hit Sales Targets

Ahead of its earnings call on Wednesday, Wall Street is betting that Tesla will not meet its own sales estimates, the Financial Times reported. Tesla is expected to sell 2.07 million vehicles in 2025, a 16% increase from 2024, but which still falls short of Elon Musk’s October projection of 20–30% growth and lags behind the 40% annual growth seen in prior years. The potential gap may be the result of US President Donald Trump’s move to dial back Biden-era electric vehicle (EV) incentives.

Could Alphabet Rival Nvidia?

As competition in the AI space continues to intensify, Alphabet’s [GOOGL] AI chip business could rival Nvidia and may become its most valuable segment, according to a report authored by Gil Luria, analyst at financial services firm D.A. Davidson, seen by Barron’s. Alphabet’s chips are already used to power AI data centers alongside Nvidia semiconductors, and the tech giant also owns DeepMind, widely seen as comparable to OpenAI; the report estimates these AI ventures are worth over $700bn.

Under Pressure Volkswagen’s New Plan

Volkswagen [VWAGY] may let Chinese carmakers take over its excess European production lines as demand falls and competition rises. Audi CEO Gernot Döllner told the Financial Times that partnering with Chinese EV makers to boost their European footprint is a possibility, despite lowering competitors’ entry barriers. Audi has already partnered with SAIC [600104:SS] to build China-focused EVs.

UAE Nuclear Push to Meet AI Demand

The UAE aims to expand its global nuclear footprint, with the US as a key growth market, the Financial Timeshas detailed. Emirates Nuclear Energy Company (Enec), established in 2009, built the Barakah plant, the Arab world’s first, in under 12 years with Korea Electric Power Corp [KEP]. Now focusing on R&D and investments, Enec is eyeing international projects as AI drives electricity demand.

Can AI Support ServiceNow’s Sustained Growth?

Cloud-based platform ServiceNow’s [NOW] share price has benefitted from the hype around AI, with its machine learning features attracting the interest of many future-focused investors. As share prices hover around an all-time high, the firm’s Q4 earnings call after market close on Wednesday is set to show if NOW has room to grow, or if the stock has become overvalued.