IBM Rallies on AI Gains While DeepSeek’s Disruption Hits Tech Stocks

The stock market remained volatile Wednesday as investors weighed quarterly earnings from major tech firms and responded to the ongoing turbulence caused by DeepSeek’s advancements in artificial intelligence. While Meta (META) gained ground and Tesla (TSLA) fluctuated, the broader sector felt the impact of uncertainty, particularly in chip stocks like Nvidia (NVDA).

Goldman Sachs downplayed fears of a prolonged downturn, stating that the AI-driven market drop was a natural correction. Analysts pointed to the heightened optimism that had characterized early 2024, making equities more vulnerable to sudden shifts in sentiment.

Market Highlights from After-Hours Trading:
📌 Tesla (TSLA) +2.8% – Bounced back from initial losses despite a mixed Q4 report and tighter profit margins.
📌 Meta (META) +4.6% – Outperformed expectations in revenue, user growth, and profit, though its Q1 outlook remained cautious.
📌 Microsoft (MSFT) -1.9% – Slipped as its Azure cloud division underperformed forecasts, even as overall earnings stayed strong.
📌 IBM (IBM) +8% – Emerged as a top gainer after posting better-than-expected Q4 earnings and unveiling an optimistic 2025 forecast, benefiting from AI innovation and favorable policy changes.

With AI adoption accelerating and new industry disruptors like DeepSeek emerging, market dynamics continue to evolve. IBM’s ability to capitalize on these shifts makes it a standout performer in the current landscape.