DeepSeek's New AI Model May Impact Nasdaq Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy NVDA?
Source: CNBC
- Market Turbulence Warning: The imminent release of a new model by China's DeepSeek could put pressure on Nasdaq stocks, reminiscent of last year's launch when the Nasdaq Composite fell 3% and Nvidia's stock dropped nearly 17%.
- Cost and Time Advantage: DeepSeek claims it took only two months and less than $6 million to develop the new model, raising questions about the U.S.'s AI leadership and the massive spending by Big Tech on data centers.
- Market Reaction Analysis: Following last year's DeepSeek release, semiconductor stocks were particularly hard hit, with the VanEck Semiconductor ETF dropping nearly 10% and failing to recover in the weeks that followed, indicating the market's sensitivity to new technologies.
- Increased Uncertainty: The current market is fragile, with investors also weighing Trump's tariff policy changes and the potential for conflict with Iran, while Nvidia's upcoming earnings report adds to the uncertainty, leading to a drop of over 700 points in the Dow Jones Industrial Average on Monday.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 198.350
Low
200.00
Averages
264.97
High
352.00
Current: 198.350
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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