Microsoft's stock held its own while investors panicked about DeepSeek's potential impact on other corners of the technology sector. That suggests Wall Street isn't too worried that DeepSeek's advancements in cost efficiency pose a major threat to Microsoft.

Following the market plunge triggered by the release of the DeepSeek chatbot, Nvidia has recovered a large portion of its losses.

Microsoft reported its fiscal second-quarter results after Wednesday's closing bell, with investors focused on all things AI.