tech
February 23, 2026
China's DeepSeek is set to release a new AI model. A rough period for Nasdaq stocks could follow
The release of DeepSeek V4 is expected to be imminent.
TL;DR
- DeepSeek, a Chinese AI company, is expected to release a new AI model, DeepSeek V4, soon.
- A previous DeepSeek model launched in January 2025 significantly impacted the stock market, causing the Nasdaq Composite to drop 3% and Nvidia to lose nearly 17%.
- The development of DeepSeek's last model in two months for under $6 million raised questions about the US lead in AI and Big Tech's spending.
- Semiconductor stocks, like those in the VanEck Semiconductor ETF (SMH), were particularly affected by the previous launch.
- The current stock market is already fragile due to factors including tariff changes and geopolitical tensions.
- Nvidia's upcoming earnings report is a key uncertainty for investors.
- The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all saw declines on Monday.
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