Nvidia CEO Jensen Huang remains as confident as ever about the company’s future, reaffirming during Wednesday’s earnings call that the launch of DeepSeek won’t negatively impact sales.
Speculation that DeepSeek’s R1 model required fewer chips for training contributed to a sharp drop in Nvidia’s stock price last month. However, Huang addressed this concern during the call, describing R1 as an “excellent innovation” and highlighting how reasoning models, including R1, are a major boon for Nvidia due to their high compute requirements.
“Reasoning models can consume up to 100 times more compute, and future reasoning models will require even more,” Huang explained. “DeepSeek R1 has sparked global excitement. It’s an outstanding innovation, but even more significantly, it has open-sourced a world-class reasoning AI model. Nearly every AI developer is applying R1.”
Nvidia’s sales continue to soar, with the company reporting a record-breaking quarter, generating $39.3 billion in revenue—surpassing both its own projections and Wall Street’s expectations. The company also forecasted further growth, projecting next-quarter revenue to reach approximately $43 billion.
Nvidia’s data center sales nearly doubled in 2024, hitting $115 billion, marking a 16% increase from the previous quarter, according to the company’s earnings release.
Huang also emphasized the strong demand for Nvidia’s latest Blackwell chip, which has been custom-built for reasoning, calling the current demand for it “extraordinary.”
“We will grow strongly in 2025,” Huang stated.
Despite the initial concerns surrounding DeepSeek last month, the AI chip market shows no signs of slowing. Meta, Google, and Amazon have all recently announced significant investments in AI infrastructure, committing hundreds of billions of dollars over the coming years.
