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European tech shares tumble as China's AI push spooks investors

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European shares slid on Monday as the technology sector joined the retreat in other markets after China's upgraded low-cost, low-power artificial intelligence (AI) model sparked worries about the profits of rivals and the need for costly tech.
The article from Reuters discusses a significant drop in European technology shares, triggered by concerns over China's advancements in artificial intelligence (AI). On January 27, 2025, the European tech sector experienced a decline, with companies like ASML Holding NV and Infineon Technologies AG seeing their stock prices fall by 3.5% and 2.8% respectively. This downturn was largely attributed to China's aggressive push into AI, which has raised fears among investors about potential market disruptions and increased competition. The article highlights that China's government has been investing heavily in AI, aiming to become a global leader in the technology by 2030, which includes initiatives to develop indigenous AI chips and reduce reliance on foreign technology. This development has led to a broader sell-off in tech stocks across Europe, as investors reassess the competitive landscape and the implications for European tech firms.

Read the Full Reuters Article at:
[ https://www.reuters.com/markets/europe/european-tech-shares-tumble-chinas-ai-push-spooks-investors-2025-01-27/ ]