Nvidia CEO Says DeepSeek Won't Impact Business, Performance Remains Strong

Nvidia CEO Jensen Huang expressed continued optimism about the company's future during Wednesday's earnings call, reaffirming that DeepSeek's impact on Nvidia's sales would be negligible.

Recent market speculation suggested that DeepSeek's R1 model required significantly fewer chips for training, causing Nvidia's stock to experience an unprecedented drop last month.

During the call, Huang praised R1 as "remarkable innovation." He emphasized that both R1 and other "inference" models are positive developments for Nvidia, as they demand substantial computing power. "Inference models could require over 100 times more computing power, and future models will need even more," he noted. "DeepSeek R1 has sparked global enthusiasm. It's an exceptional innovation and, more importantly, it has open-sourced a world-class inference AI model that nearly all AI developers are utilizing."

Nvidia's sales show no signs of slowing down. The company reported record-breaking revenue of $39.3 billion last quarter, surpassing both its own projections and Wall Street expectations. Additionally, Nvidia anticipates further growth in the next quarter, forecasting approximately $43 billion in revenue.

According to Nvidia's financial report, its data center business nearly doubled in 2024, reaching $115 billion, marking a 16% increase from the previous quarter.

During the call, Huang also introduced Nvidia's latest Blackwell chip, specifically designed for inference tasks, which is experiencing "exceptionally strong" market demand.

Huang stated, "We anticipate robust growth in 2025."

In reality, despite last month's market panic triggered by concerns over DeepSeek, the AI chip market shows no signs of cooling down.

Since then, Meta, Google, and Amazon have announced plans to invest hundreds of billions in AI infrastructure development over the coming years.