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AI proxy stocks Siemens Energy, Munster tumble on DeepSeek concerns

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          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Shares of Siemens Energy AG (ETR:ENR1n) (XETRA:ENR) plummeted 17.2% as European markets faced a broad sell-off, particularly in the technology sector, following the introduction of a new low-cost artificial intelligence (AI) model by startup DeepSeek.
The article from MSN discusses the significant drop in Siemens Energy AG's stock price, which fell by as much as 35% in Frankfurt, triggered by concerns over quality issues at its Spanish unit, Siemens Gamesa. Siemens Energy, which had previously been a favored stock among investors due to its involvement in AI and automation, saw its shares plummet after revealing that the costs associated with fixing these quality problems could exceed previous estimates by a substantial margin. This news led to a broader market reaction, affecting other AI-related stocks like those of the German software company SAP SE, which also experienced declines. The situation was exacerbated by Siemens Energy's decision to suspend its profit guidance for the year, highlighting the severity of the financial impact from the turbine issues at Siemens Gamesa.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/other/ai-proxy-stocks-siemens-energy-munster-tumble-on-deepseek-concerns/ar-AA1xVvpc ]