Nvidia CEO Jensen Huang Dismisses DeepSeek Concerns as Sales Skyrocket
Nvidia’s CEO, Jensen Huang, remains optimistic about the company’s future, particularly in light of the evolving landscape of AI technology. During the recent earnings call on Wednesday, he addressed concerns about the new DeepSeek R1 model and its potential impact on sales.
Impact of DeepSeek R1 on Nvidia’s Performance
Amid speculation that DeepSeek’s R1 model requires fewer chips for training, Nvidia experienced a significant drop in stock prices last month. However, Huang reassured investors that this innovation will not negatively affect their sales.
Acknowledging Innovation in AI
Huang highlighted the R1 model as an “excellent innovation,” noting that it, along with other reasoning models, is beneficial for Nvidia because they demand significantly more computational power. He stated:
“Reasoning models can consume 100 times more compute, and future reasoning models will consume much more compute.”
He added that DeepSeek R1 has sparked global excitement and has made a world-class reasoning AI model accessible to developers worldwide. According to Huang, nearly every AI developer is now implementing R1 into their projects.
Record-Breaking Financial Performance
Nvidia’s financial results indicate that the company’s momentum is far from waning. The latest earnings report revealed an impressive revenue of $39.3 billion, surpassing both internal forecasts and Wall Street expectations. Looking ahead, Nvidia anticipates revenues to increase further, projecting around $43 billion for the next quarter.
Data Center Sales Surge
- Data center sales in 2024 reached $115 billion, nearly doubling from the previous year.
- Sales rose by 16% compared to the previous quarter, according to the company’s earnings release.
During the call, Huang praised Nvidia’s latest Blackwell chip, specifically designed for reasoning tasks, stating that the current demand for it is “extraordinary.”
Looking Ahead: Growth Predictions
Huang expressed confidence in Nvidia’s growth trajectory, stating, “We will grow strongly in 2025.” Despite the market turbulence surrounding DeepSeek, the demand for AI chips continues to rise.
Industry Investments in AI
Major tech players like Meta, Google, and Amazon have announced substantial investments in AI infrastructure, collectively committing hundreds of billions of dollars over the coming years. This trend underscores the growing importance of AI technology and its potential to drive future innovations.
For more insights on Nvidia’s performance and AI developments, check out our Nvidia performance updates or learn about the latest trends in AI investments.
