• Nvidia reported a record quarterly revenue of $39.3 billion despite earlier market panic over DeepSeek's R1 model.
  • CEO Jensen Huang claims reasoning models like DeepSeek benefit Nvidia by requiring "100 times more compute."
  • Tech giants including Meta, Google, and Amazon have announced hundreds of billions in AI infrastructure investments, supporting Nvidia's growth outlook.

Nvidia CEO Jensen Huang remains optimistic about his company's trajectory despite recent market volatility, reaffirming that DeepSeek's R1 model poses no threat to Nvidia's business during Wednesday's earnings call.

Last month, Nvidia experienced a record stock price drop following speculation that DeepSeek's R1 model required significantly fewer chips for training, potentially threatening Nvidia's market dominance.

However, Huang has turned this narrative on its head, describing R1 as an "excellent innovation" and suggesting that reasoning models like DeepSeek benefit Nvidia by demanding substantially more computing power.

"Reasoning models can consume 100 times more compute, and future reasoning models will consume much more compute," Huang explained during the call. "DeepSeek R1 has ignited global enthusiasm.
It's an excellent innovation, but even more importantly, it has open-sourced a world-class reasoning AI model. Nearly every AI developer is applying R1."

The numbers support Huang's confidence.

Nvidia reported another record-breaking quarter with revenue reaching $39.3 billion, exceeding both internal projections and Wall Street expectations.

The company forecasts continued growth, anticipating revenue of approximately $43 billion for the upcoming quarter.

Nvidia's data center division, which drives the company's AI chip business, saw sales nearly double in 2024 to $115 billion—a 16% increase from the previous quarter alone, according to the earnings release.

Huang highlighted Nvidia's latest Blackwell chip as being specifically designed for reasoning applications, noting that demand for this next-generation technology is "extraordinary."

"We will grow strongly in 2025," Huang asserted.

The broader market for AI chips shows no indication of slowing down.

Since the DeepSeek concerns emerged last month, tech giants including Meta, Google, and Amazon have announced massive AI infrastructure investments, collectively committing hundreds of billions of dollars for coming years.

Edited By Annette George