01:37 PM EST, 01/27/2025 (MT Newswires) -- Tech stocks were in the red Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) dropping 5.4% and the SPDR S&P Semiconductor ETF (XSD) down 8.7%.

The Philadelphia Semiconductor index tumbled 10.1%.

In corporate news, shares of major semiconductor companies fell amid the emergence of Chinese AI startup DeepSeek, which has launched an open-source AI model that can possibly run on less-advanced chips. DeepSeek's app was ranked first on Apple's (AAPL) App Store over the weekend, Wedbush said in a note Monday. Nvidia ( NVDA ) dropped 17%, Broadcom ( AVGO ) fell 19.6%, Micron (MU) shed 13.6%, and ASML ( ASML ) slumped 7%.