Nvidia’s CEO Jensen Huang remains highly optimistic about the company’s prospects, asserting during the recent earnings call on Wednesday that DeepSeek will not adversely affect sales.
Concerns regarding the R1 model from DeepSeek, which reportedly requires significantly fewer chips for training, led to a historic decline in Nvidia’s stock last month.
However, during the earnings call, Huang praised R1 as an “outstanding innovation,” highlighting that it, along with other reasoning models, represents significant good news for Nvidia due to their substantial computational requirements.
“Reasoning models can require up to 100 times more compute power, and future iterations will demand even greater resources,” Huang noted. “The excitement surrounding DeepSeek R1 is palpable. While it’s a remarkable innovation, it has also provided a world-class open-sourced reasoning AI model that nearly all AI developers are incorporating into their work.”
Nvidia continues to show robust sales performance, with the company reporting a staggering $39.3 billion in revenue for the quarter—surpassing its own forecasts and Wall Street expectations. The company anticipates a revenue increase in the next quarter, projecting around $43 billion.
Nvidia’s data center revenue nearly doubled in 2024, reaching $115 billion, with a 16% rise compared to the previous quarter, according to the company’s earnings report.
During the call, Huang also highlighted Nvidia’s latest Blackwell chip, designed specifically for reasoning tasks, mentioning that the current demand is “extraordinary.”
“We are poised for strong growth in 2025,” said Huang.
Indeed, despite the turmoil surrounding DeepSeek last month, the market for AI chips continues to thrive.
Since then, major players like Meta, Google, and Amazon have announced substantial investments in AI infrastructure, collectively allocating hundreds of billions for the years ahead.
Compiled by Techarena.au.
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