DeepSeek's New Model May Disrupt Nvidia Again
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 11 2026
0mins
Source: Fool
- Increased AI Competition: DeepSeek's upcoming V4 model, expected to launch this month, may outperform ChatGPT and Claude in long coding tasks, potentially putting renewed pressure on Nvidia and other tech stocks amid ongoing investor concerns about AI spending.
- Market Reaction Anticipation: The release of DeepSeek's AI model last year briefly caused Nvidia's stock to drop, and if V4 performs well, it could trigger another market sell-off, prompting investors to be cautious about potential stock price volatility.
- Investment Value Analysis: Nvidia currently trades at a forward P/E ratio of 24, slightly above the S&P 500's 22, yet a modest decline in its stock price could make it attractive to long-term investors who see it as a good investment opportunity.
- Increased Capital Expenditures: As tech companies continue to ramp up capital expenditures, questions arise regarding the justification of AI spending, and DeepSeek's competitive edge may lead investors to reassess Nvidia's market position and future growth potential.
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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: 214.250
Low
200.00
Averages
264.97
High
352.00
Current: 214.250
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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See More
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