By Kim Mackrael

DeepSeek prompted a major sell off of tech stocks this week, but ASML's chief says the artificial-intelligence upstart could boost the chips sector in the longer term.

Tech stocks-including ASML-fell sharply Monday after DeepSeek said it had trained high-performing AI models using less advanced chips. The news upended the conventional wisdom that expensive, cutting-edge chips are essential for building the most advanced AI systems.

That isn't necessarily bad news for ASML, according to Chief Executive Christophe Fouquet. The Dutch company supplies machines-including those that produce the world's most advanced chips-to customers including Taiwan Semiconductor Manufacturing Co. and Intel.

"Anyone that lowers costs is in fact good news for ASML because lower cost means AI can be used in more applications, more applications mean more chips, and we are in the business of providing equipment to people who make chips," Fouquet said.

His comments came as ASML's shares rose sharply Wednesday after the company reported better-than-expected orders for the fourth quarter.

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January 29, 2025 11:37 ET (16:37 GMT)

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