04:03 PM EST, 01/28/2025 (MT Newswires) -- Tech stocks were rising late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) advancing 2.6% and the SPDR S&P Semiconductor ETF (XSD) up 0.7%.

The Philadelphia Semiconductor index climbed 1.1%.

In sector news, the current frenzy around DeepSeek will prove to be "tech AI head fake" that will be short-lived as more details about its model and resources emerge, Wedbush Securities said in a note Tuesday. Analysts, including Daniel Ives, said that the claim that this model was built for $6 million without using Nvidia's ( NVDA ) next generation hardware is likely exaggerated, and it's at the center of the debate that sparked Monday's tech selloff.

In corporate news, Bets against Nvidia ( NVDA ) amid a surge in interest for Chinese AI startup DeepSeek yielded one-day gains of about $6.6 billion for short sellers, Reuters reported, citing data analytics firm Ortex. Short positions in Broadcom ( AVGO ) resulted in over $2 billion in profits, the report said. Nvidia ( NVDA ) shares were rising 8% in recent Tuesday trading, and Broadcom ( AVGO ) was up 3.6%.

Okta ( OKTA ) shares popped 4.2% after the company said it will work with McLaren Racing to explore ways to improve how McLaren Racing stakeholders access their apps and platforms under a multiyear partnership with the McLaren Formula 1 Team.

Microsoft ( MSFT ) is considering an acquisition of TikTok, President Donald Trump said Monday, according to media reports. Separately, Microsoft ( MSFT )-backed OpenAI unveiled ChatGPT Gov, which it said is designed to provide US government agencies with an extra way to access OpenAI's frontier models. Microsoft ( MSFT ) shares rose 3%.

SAP (SAP) reported Q4 non-IFRS earnings from continuing operations on Tuesday of 1.40 euros ($1.46) per share, up from 1.12 euros a year earlier and above the FactSet consensus analyst estimate of 1.34 euros. Its shares were down 0.7%.