Nvidia CEO Jensen Huang Dismisses DeepSeek as Sales Continue to Surge

Nvidia CEO Jensen Huang remains optimistic about the company’s future, reaffirming that DeepSeek won’t affect sales during Wednesday’s earnings call.

DeepSeek R1 Sparks Stock Dip, But Huang Sees Growing Demand for Compute

Last month, speculation that DeepSeek’s R1 model required significantly fewer chips for training led to a record drop in Nvidia’s stock price. However, Huang praised R1 as an “excellent innovation,” highlighting that reasoning models like it actually drive demand for more computing power.

“Reasoning models can consume 100 times more compute, and future reasoning models will require even more,” Huang stated. “DeepSeek R1 has sparked global enthusiasm. It’s a groundbreaking innovation, but more importantly, it has open-sourced a world-class reasoning AI model. Nearly every AI developer is adopting R1.”

Nvidia Defies Concerns with Record-Breaking Revenue Growth

Despite concerns, Nvidia’s sales continue to soar. The company reported a record-breaking quarter with $39.3 billion in revenue, surpassing both internal projections and Wall Street expectations. It anticipates even higher revenue next quarter, around $43 billion.

Nvidia’s data center sales nearly doubled in 2024, reaching $115 billion—up 16% from the previous quarter.

Huang Highlights Surging Demand for Nvidia’s Blackwell Chip

During the call, Huang also emphasized the growing demand for Nvidia’s latest Blackwell chip, designed specifically for reasoning models, calling its current demand “extraordinary.”

“We will see strong growth in 2025,” Huang stated.

Despite last month’s concerns over DeepSeek, demand for AI chips remains robust.

Since then, Meta, Google, and Amazon have announced large-scale AI infrastructure investments, pledging hundreds of billions of dollars over the next few years.

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