By Sinéad Carew, Medha Singh and Amanda Cooper NEW YORK/BENGALURU/LONDON (Reuters) -Semiconductor stocks were a mixed bag on Wednesday, with European chip stocks rallying on strong earnings while U.S.

US tech stocks were steady on Tuesday after they slumped on Monday following the sudden rise of Chinese-made artificial intelligence (AI) app DeepSeek. Shares in chip giant Nvidia rose by 8.8%, having slumped on Monday,

Chinese AI startup DeepSeek disrupts U.S. tech markets with cost-efficient, open-source models, sparking national security concerns and testing trade restrictions.

A slew of stocks, including chip maker Nvidia, fell Monday after Chinese startup DeepSeek released an AI model that runs on less-advanced chips and at a lower cost than U.S. rivals.

According to a paper authored by the lab, the DeepSeek-R1 model outperforms cutting-edge models such as OpenAI’s o1 and Meta’s Llama AI models across multiple benchmarks.