Nvidia’s CEO Remains Bullish Despite DeepSeek Concerns
Nvidia’s latest earnings call has sent a clear message: the company’s sales are soaring, and CEO Jensen Huang is confident that DeepSeek’s R1 model won’t impact sales. Despite speculation that DeepSeek’s innovation could reduce demand for Nvidia’s chips, Huang remains optimistic about the company’s future.
A Record-Breaking Quarter
Nvidia’s revenue has reached a staggering $39.3 billion, exceeding both the company’s own projections and Wall Street estimates. The tech giant expects revenue to continue growing, with projections of around $43 billion for the next quarter. Data center sales have nearly doubled in 2024, reaching $115 billion, with a 16% increase from the previous quarter.
The Rise of Reasoning Models
Huang emphasized the significance of reasoning models, such as DeepSeek’s R1, which consume significantly more compute power. “Reasoning models can consume 100 times more compute, and future reasoning models will consume much more compute,” he explained. This trend is expected to drive demand for Nvidia’s chips, particularly the custom-built Blackwell chip designed for reasoning.
Market Demand for AI Chips Remains Strong
Despite initial concerns over DeepSeek’s impact, the market for AI chips shows no signs of cooling off. Major tech companies, including Meta, Google, and Amazon, have unveiled massive AI infrastructure investments, committing hundreds of billions of dollars for the coming years.
Conclusion
Nvidia’s CEO, Jensen Huang, remains confident about the company’s future, despite initial concerns over DeepSeek’s R1 model. With record-breaking sales and a strong demand for AI chips, Nvidia is poised for continued growth in 2025.
