Dutch semiconductor stocks tumble after Chinese AI chatbot launch

Stocks of major Dutch semiconductor companies plummeted on Monday following the launch of DeepSeek, a Chinese AI chatbot developed for a fraction of the cost of its Western counterparts. The chatbot, which reportedly uses significantly fewer microchips, has raised concerns about the impact on the global chip market.

Shares in ASML Holding N.V., a major player in chip lithography machines, dropped 9 percent in early trading on the Euronext Amsterdam exchange before recovering slightly to close at 748.00 euros. ASM International N.V. fell over 10 percent and remained down by 10.71 percent at 580.00 euros. BE Semiconductor Industries N.V. (Besi) also saw a sharp decline, losing 10 percent before stabilizing at 125.75 euros by the end of trading.

The Chinese chatbot, reportedly developed for just 6 million dollars, has sparked fears about reduced demand for high-performance chips. Analysts have suggested that DeepSeek’s efficiency and reliance on fewer microchips could disrupt the market. The Wall Street Journal reported that the power consumption for developing DeepSeek might have been understated by its creators, further fueling investor skepticism.

The release of DeepSeek has also affected global tech stocks. In the United States, AI-related companies such as Nvidia, Meta, Tesla, and Microsoft saw declines when markets opened. Nvidia, a leading AI chip supplier, experienced a 12.5 percent drop in its stock price.

DeepSeek has already topped the Apple App Store rankings in the United States, surpassing OpenAI’s ChatGPT. The app’s rapid rise challenges the perception that China’s AI technology lags behind its U.S. counterparts. Built using open-source technology, DeepSeek raises questions about the multi-billion-dollar investments made by American tech giants in proprietary AI systems.

Investment strategist Charu Chanana of Saxo Markets said, “While current leaders like Nvidia hold a strong position, the rise of DeepSeek is a reminder that U.S. AI dominance cannot be taken for granted. Future competitors are likely to emerge faster and challenge established players more quickly.”

The U.S. Dow Jones Industrial Average dropped 0.4 percent to 44,224 points shortly after markets opened. The broader S&P 500 fell 1.8 percent to 5,991 points, and the Nasdaq Composite Index declined 3 percent to 19,345 points. Last week, all three indices had posted significant gains, partly due to U.S. President Donald Trump’s announced plans for substantial AI investments.