Jensen Huang Dismisses DeepSeek AI Challenge as NVIDIA Sales Surge

Nvidia Remains Optimistic Despite DeepSeek Concerns

Jensen Huang, CEO of Nvidia, continues to express strong confidence in his company’s prospects. He reiterated his belief that DeepSeek’s advancements will not negatively affect sales during the recent earnings call held on Wednesday.

Stock Market Reaction and DeepSeek’s R1 Model

Speculation surrounding the reduced chip requirements for training DeepSeek’s R1 model led to a significant decline in Nvidia’s stock price last month.

Huang’s Perspective on Reasoning Models

However, during the earnings call, Huang praised R1 as a noteworthy “excellent innovation.” He highlighted that models focused on “reasoning” are beneficial for Nvidia, as they demand substantially greater computational resources.

“Reasoning models have the potential to utilize 100 times more compute power,” Huang stated. “Furthermore, future iterations of these reasoning models will likely require even more compute.”

He added, “DeepSeek R1 has sparked considerable global interest. It represents a significant innovation, and crucially, it has made a top-tier reasoning AI model openly available. A vast majority of AI developers are now utilizing R1.”

Record-Breaking Financial Performance

Nvidia’s sales continue to demonstrate robust growth. The company announced another record-breaking quarter, with revenue reaching $39.3 billion – surpassing both internal forecasts and Wall Street expectations.

The company anticipates further revenue growth in the upcoming quarter, projecting approximately $43 billion.

Growth in Data Center Sales

Nvidia’s data center sales nearly doubled in 2024, reaching $115 billion. This represents a 16% increase compared to the previous quarter, as detailed in the company’s earnings report.

Blackwell Chip and Future Outlook

Huang emphasized that Nvidia’s newest Blackwell chip is specifically designed for reasoning tasks. He also noted that current demand for the Blackwell chip is “extraordinary.”

“We are poised for substantial growth in 2025,” Huang affirmed.

Continued Demand for AI Chips

Despite last month’s market reaction to DeepSeek, the demand for AI chips remains strong.

Since then, major tech companies including Meta, Google, and Amazon have announced significant investments in AI infrastructure. These commitments collectively total hundreds of billions of dollars for the years ahead.