AI Prediction: Potential for AI to Set Another Record High After Recent Shock in DAX Index
Whew, DeepSeek AI Shock Subsided? Let's Check Out the Latest on DAX and Auto Stocks.
The Chinese DeepSeek AI created a splash in the market scene yesterday, causing a dip in stocks like Nvidia and Siemens Energy by approximately 20 percent. Despite this initial shock, the German DAX picked up steam on Tuesday, ascending 0.6 percent to hit 21,414 points, almost reaching its record high of 21,520 points recorded on Friday.
The European counterpart, Euro Stoxx 50, followed suit, surging 0.3 percent to 5,202 points. The market turbulence sparked by the DeepSeek AI competition flooded the scene on Monday, eventually settling down in the latter part of the day.
AI has gained fierce momentum, thanks to China's affordable solutions, challenging the large tech companies' billion-dollar investments. This development is seen as a turning point in the AI market because it could potentially be trained with less computing power than anticipated. With cost-effective AI, more companies will have the opportunity to join the fray, accelerating growth and easing inflationary pressure.
DAX (WKN: 846900) - The Stars Shining Bright in a Sea of Auto Stocks
Two standout stars in the DAX this day are Sartorius and Siemens Energy, boosting gains of 11 and 7 percent respectively.
Siemens Energy rebounded from an initial market slump at the beginning of the week with promising results. The company reported a robust start to the new fiscal year, performing better than anticipated by analysts.
Laboratory and pharmaceutical supplier Sartorius is hoping for a comeback after a tough year. The company is aiming to grow profitably and modestly increase sales by 2025.
More on the Stocks' Performance and Price Increase - Click Here for Details
Auto stocks experienced the most losses today. Porsche, Daimler Truck, and BMW are currently struggling at the bottom of the DAX, dropping 1.3 percent, 1.3 percent, and 2.8 percent respectively.
KC Analysts scaled back their price target for Porsche from 80 to 71 euros, but maintained their positive outlook, keeping the 'Buy' rating.
BMW finished the year on the lower end of the October-issued guidance for the operating margin in the automotive business. The company achieved its target of more than four billion euros in free cash flow. However, the results are provisional and may change. BMW will shed more light on its financial health in its annual report on March 14.
Originally published by dpa-AFX
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In the robust recovery of the German DAX, Siemens Energy demonstrated a remarkable rebound, reporting strong fiscal performance and boosting gains of 7 percent. Meanwhile, the fintech sector, specifically technology-driven businesses, are poised for accelerated growth as cost-effective AI solutions, such as those offered by Chinese DeepSeek AI, reduce the need for excessive computing power in the business world.
