Nvidia CEO Jensen Huang remains confident in the company’s future, dismissing concerns that DeepSeek’s R1 model will impact sales, a point he reiterated during the latest earnings call on Wednesday.
Speculation surrounding DeepSeek’s R1 model, which was rumored to require fewer chips to train, led to a significant drop in Nvidia’s stock price last month. However, Huang remains bullish, praising the R1 model as an “excellent innovation” and noting that it and other “reasoning” models are beneficial to Nvidia because they require significantly more compute power.
“Reasoning models can consume up to 100 times more compute, and future reasoning models will demand even more,” Huang said. He went on to highlight that while DeepSeek R1 has sparked global excitement, its open-source release has allowed nearly every AI developer to integrate it into their work, further increasing the demand for Nvidia’s products.
Nvidia’s financial performance continues to soar. The company reported a record-breaking quarter, with revenue reaching $39.3 billion, surpassing both its own projections and Wall Street estimates. Looking ahead, Nvidia expects its revenue to climb even higher in the next quarter, forecasting approximately $43 billion in revenue.
Data center sales for Nvidia saw an impressive surge, nearly doubling in 2024 to $115 billion, reflecting a 16% growth from the previous quarter. Huang credited Nvidia’s latest Blackwell chip, specifically designed for reasoning tasks, with driving much of this growth. He described the current demand for the chip as “extraordinary” and confidently stated, “We will grow strongly in 2025.”
Despite the initial market jitters over DeepSeek, the AI chip market continues to expand at a rapid pace. Tech giants such as Meta, Google, and Amazon have all made significant AI infrastructure investments, collectively committing billions of dollars for the years ahead, further solidifying the market’s momentum.
With these trends in place, Nvidia’s growth trajectory remains strong, driven by the ever-increasing demand for AI technologies and high-performance computing.
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