Nvidia Isn’t Threatened by DeepSeek 

Nvidia CEO, Jensen Huang, remains confident about the company’s future. He has downplayed concerns that DeepSeek’s latest AI model could impact its dominance. Speaking on the company’s earnings call on Wednesday, Huang reassured investors that Nvidia’s sales momentum remains strong. And there were no signs of slowing down.

Is DeepSeek R1 a Disruptor or Catalyst for Growth?

Last month, Nvidia’s stock took a historic dive. There was a speculation that the DeepSeek R1 model required significantly fewer chips to train. Investors feared this could mean doom for Nvidia, whose high-performance GPUs power the AI industry. However, Huang sees things differently.

Rather than viewing DeepSeek R1 as a threat, he called it an “excellent innovation” that’s re-surged AI. 

“Reasoning models can consume 100 times more compute, and future reasoning models will consume much more compute,” Huang said. “DeepSeek R1 has ignited global enthusiasm. It’s an excellent innovation, but even more importantly, it has open-sourced a world-class reasoning AI model. Nearly every AI developer is applying R1.”

In short, rather than reducing demand, DeepSeek’s model could actually drive higher computational needs. And that’s exactly what Nvidia wants.

Nvidia Posts Record-Breaking Revenue

DeepSeek R1 rattled investors but Nvidia’s financial results were calming. The company reported an eye-watering $39.3 billion in revenue for the last quarter. Those figures have shattered expectations and surpassed Wall Street estimates. 

Looking ahead, Nvidia projects an even stronger quarter with the expected revenue being approximately $43 billion.

Key Highlights From Nvidia’s Earnings Report:

• Quarterly Revenue: $39.3 billion (above projections)
• Projected Next-Quarter Revenue: Around $43 billion
• Data Center Sales: $115 billion in 2024, up 16% from the previous quarter

Nvidia’s data center segment continues to be a major growth driver, nearly doubling its revenue from the previous year. With AI adoption expanding, demand for Nvidia’s chips remains at an all-time high.

The Blackwell Chip

One of the biggest highlights from the earnings call was Nvidia’s latest innovation: the Blackwell chip. According to Huang, this next-generation chip is specifically designed for reasoning models like DeepSeek R1. This could be the next best crucial AI product.

“Current demand for Blackwell is extraordinary,” Huang noted. He further emphasized that Nvidia is well-positioned to capitalize on AI’s next evolution.

AI Chip Demand Remains Strong Despite Market Jitters

Despite last month’s panic over DeepSeek, the AI chip market is anything but cooling off. As a matter of fact, it’s rising: 

• AI models are becoming more complex and compute-intensive.
• Companies are racing to develop proprietary AI infrastructure.
• Cloud providers and enterprises are scaling up AI capabilities at a faster rate.

What the Future Holds for Nvidia

With record-breaking revenue and continued innovation, Nvidia shows no signs of slowing down. Huang’s bullish stance on AI’s future suggests the company is preparing for sustained growth in 2025 and beyond.

“We will grow strongly in 2025,” Huang said.