02:00 PM EST, 01/28/2025 (MT Newswires) -- Tech stocks were mixed Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 2.3% and the SPDR S&P Semiconductor ETF (XSD) down 0.5%.

The Philadelphia Semiconductor index rose 0.5%.

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, 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 2.6%.

Nvidia ( NVDA ) shares saw record retail purchases of $562.2 million following a 17% drop in stock price on Monday, fueled by concerns about DeepSeek's low-cost AI model, Reuters reported, citing Vanda Research data. Nvidia ( NVDA ) shares jumped 6.6%.

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 0.5%.