Siemens Energy falls 20% as European stocks close lower amid AI concerns

European markets closed slightly lower on Monday as investors in the region reacted to a potential artificial intelligence breakthrough out of China.

The Stoxx 600 index pared steep losses from earlier in the day to close down 0.07%. Technology stocks led to the downside falling 1.5%.

Weak tech performance was mirrored in Asia markets and in the U.S. as the success of Chinese AI startup DeepSeek sparked concerns over incumbent U.S. giants’ global leadership in AI.

Shares of European chip firms ASML and ASM International dropped 7% and 12%, respectively.

Shares of companies with ties to the AI supply chain also nosedived.

Siemens Energy — which uses Nvidia technology in its own operations and has touted its investments in power grids to help meet demand for the energy required to operate the tech — was down 19.95% at market close. Schneider Electric, which collaborates with Nvidia on designs for AI data center cooling systems, closed 9.5% lower.