Nvidia CEO Jensen Huang Praises DeepSeek's R1 Model, Remains Bullish on AI Chip Demand

Nvidia chief Jensen Huang's first acknowledgement of DeepSeek; here's what he said on Chinese startup's blockbuster R1 model

Nvidia CEO Jensen Huang acknowledges the success of DeepSeek's R1 AI model and expresses optimism about Nvidia's future despite market impacts. Huang emphasizes long-term AI chip demand and investments from clients like Meta, Amazon, Google, and Microsoft. Nvidia's Blackwell chips see extraordinary demand, and AI data centres are expected to become essential infrastructure globally.During Nvidia's recent earnings call, CEO Jensen Huang commented on the unexpected popularity of DeepSeek, the Chinese AI firm whose R1 model has been creating a stir worldwide. Huang acknowledged for the first time directly about the R1's success, reported Fortune. Here is what he said. While DeepSeek's launch had brought a steep decline in Nvidia's market cap, losing $600 billion in one day, Huang did not seem concerned and remains optimistic about the company's future. According to Fortune, Huang admitted the "global enthusiasm" for the R1 model, referring to it as "an excellent innovation." He also mentioned that DeepSeek "has open-sourced a world-class reasoning AI mode," as quoted in the report. According to Huang, Nvidia's emphasis is on the long-term, wider demand for AI chips and computing power, reported Fortune. He highlighted the rise of digital assistants, which can use AI to complete complex, multi-step tasks, as well as AI's integration with robotics. He said "Each of these [technologies] is just getting started," as quoted in the report. Although admitting the success of DeepSeek has rocked the market, Huang is sure that Nvidia's position in the AI race is safe. Key clients, such as Meta, Amazon, Google, and Microsoft, are planning to pump $320 billion into AI and data centre infrastructure, guaranteeing constant demand for Nvidia's chips, as per a CNBC report. Such clients, Huang said, were already making enormous investments to increase AI capabilities, further cementing the demand for powerful computing. Huang said, "Going forward, data centres will dedicate most of CapEx to accelerated computing and AI," as quoted by Fortune. He also claimed, "Data centres will increasingly become AI factories, and every company will have them, either rented or self-operated," as per the report. Huang also touched on some of the pressing issues regarding Nvidia's product lines. He pointed out that although the Blackwell chips, Nvidia's new-generation product, are seeing "extraordinary" demand. The company said it sold $11 billion worth of the chips for the quarter, reported Fortune. While the platform had been plagued by server rack overheating problems, Huang assured analysts that these issues were anticipated and future updates would be easier to implement. CFO Colette Kress claimed, "This is the fastest product ramp in our company's history, unprecedented in its speed and scale," as quoted by Fortune. According to Huang, the rise of AI is a global trend that will outlast any temporary obstacles, including export restrictions and competition from startups like DeepSeek. Despite a reduction in Nvidia's Chinese revenue following US export controls, Huang is confident that AI's potential to address a significant portion of the global economy is too large to be impacted by these challenges. He said "No technology has ever had the opportunity to address a larger part of the world's GDP than AI," as quoted by Fortune. Is Nvidia worried about competition from DeepSeek? No, Huang remains confident that Nvidia's position in the AI race is secure despite competition from startups like DeepSeek, citing the large-scale investments being made by major tech companies in AI infrastructure. How did DeepSeek's success affect Nvidia's market cap? DeepSeek's launch led to a sharp drop in Nvidia's market cap, losing $600 billion in one day.

Nvidia boss Jensen Huang feels AI is now overworked and may have to work 100 times harder to match the fast pace development

Nvidia continues to dominate the AI computing market, reporting a record $130.5 billion in annual revenue, with data centre earnings surging 93%. CEO Jensen Huang predicts next-generation AI will require 100 times more computing power, reinforcing demand for Nvidia's chips. However, US export controls have slashed its China revenue, and rising competition from DeepSeek and Huawei poses challenges. Despite a recent stock dip, Nvidia's latest Blackwell processors and strong earnings have reassured investors, keeping the company at AI's cutting edge.Nvidia has once again delivered outstanding financial results, cementing its position as the leader in artificial intelligence computing. The company reported a 78% increase in revenue year-on-year, hitting $39.33 billion in the latest quarter. Data centre revenue surged 93% to $35.6 billion, now making up over 90% of total earnings. Nvidia closed the fiscal year with record revenue of $130.5 billion, driven by massive demand for its AI-powered chips. Net income for the quarter reached $22 billion, a testament to Nvidia's dominant role in the AI sector. However, despite its financial success, the company faces challenges ranging from geopolitical tensions to emerging competition. Nvidia CEO Jensen Huang believes AI is advancing at an unprecedented rate, and future models will require far greater computational power. Speaking to CNBC's Jon Fortt, he explained that next-generation AI models, such as DeepSeek R1, OpenAI's GPT-4, and xAI's Grok 3, require significantly more processing power. "The amount of computation necessary to do that reasoning process is 100 times more than what we used to do," Huang stated. He emphasised that reasoning-based AI is the future, and it will drive even greater demand for Nvidia's high-performance chips. DeepSeek's recent advancements raised concerns over the possibility of achieving similar AI efficiency at a lower cost. However, Huang dismissed the notion that it would reduce demand for Nvidia's chips. "DeepSeek was fantastic," he said. "It was fantastic because it open-sourced a reasoning model that's absolutely world-class." Nvidia's business in China has been significantly affected by US export controls, which were tightened under the Biden administration. The company's revenue from China has dropped by about half due to these restrictions. Huang acknowledged the impact but noted that developers will likely find alternative solutions. "Ultimately, software finds a way," he said. "You ultimately make that software work on whatever system that you're targeting, and you create great software." The restrictions mean that Nvidia's most advanced AI chips cannot be sold in China. Instead, the company offers lower-powered alternatives, but these are significantly less capable. Nvidia's GB200 processor, available in the US, generates AI content 60 times faster than the downgraded versions supplied to China. Meanwhile, competition is growing. Chinese tech giant Huawei is ramping up efforts to develop its own AI chips, posing a potential threat to Nvidia's dominance in the region. The sudden rise of DeepSeek's AI models also signals that new players are entering the space with cost-effective alternatives. In January, Nvidia's stock took a 17% hit -- its worst decline since 2020 -- following concerns about DeepSeek's AI model. Investors feared that cheaper alternatives could undermine Nvidia's grip on the high-end AI computing market. However, the company's latest earnings report helped restore confidence. "Despite market jitters over DeepSeek's efficient model and early Blackwell deployment challenges, Nvidia's results reaffirm that it continues to lead the AI landscape, sidelining skeptics," said Emarketer technology analyst Jacob Bourne. Following the earnings announcement, Nvidia shares rose by over 2% in after-hours trading, signalling renewed investor optimism. Nvidia is not slowing down. The company has ramped up large-scale production of its latest Blackwell processors, which are expected to play a critical role in AI's next phase. "AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionise the largest industries," Huang stated in an earnings release. Nvidia has projected revenue of $43 billion for the current quarter, exceeding analyst expectations. As it navigates competition, regulatory hurdles, and rapid technological changes, Nvidia remains at the forefront of AI computing. Whether it can maintain its dominance amid growing competition will be the key question moving forward.

Nvidia CEO Jensen Huang shrugs off DeepSeek as sales soar | TechCrunch

Nvidia CEO Jensen Huang is as bullish as ever about his company's future, repeating his sentiments that DeepSeek won't impact sales, he said during the latest earnings call on Wednesday. Speculation that DeepSeek's R1 model required far fewer chips to train fueled a record drop in Nvidia's stock price last month. But during the earnings call, Huang touted R1 as an "excellent innovation," emphasizing that it and other 'reasoning' models are great news for Nvidia since they need so much more compute. "Reasoning models can consume 100 times more compute, and future reasoning models will consume much more compute," Huang said. "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." Nvidia's sales show no signs of slowing down. Nvidia reported another record-breaking quarter that saw its revenue reach $39.3 billion -- exceeding both its own projections and Wall Street estimates. And it said it expects revenue for the next quarter to be up again, to around $43 billion. Nvidia's data center sales nearly doubled in 2024 to $115 billion and rose 16% from the previous quarter, per the tech giant's earnings release. During the call, Huang touted Nvidia's latest Blackwell chip as being custom-built for reasoning and said that current demand for it is "extraordinary." "We will grow strongly in 2025," Huang said. Indeed, despite last month's panic over DeepSeek, the market for AI chips shows no signs of cooling off.

What Nvidia's CEO thinks about DeepSeek ahead of earnings

Amazon takes creative control of the James Bond movie franchise After the Hangzhou-based AI startup spooked investors in January, Nvidia's stock plunged 17%, wiping out nearly $600 billion in value -- a record loss for a U.S. company -- amid a global selloff of tech stocks. In December, DeepSeek said it used a cluster of just under 2,050 of Nvidia's reduced-capability H800 chips to train its DeepSeek-V3 model -- much less than the tens of thousands of more advanced Nvidia chips U.S. firms are using to train similarly-sized models. The AI startup's models, which it demonstrated to be on par with those from OpenAI and Meta (META-1.59%), prompted questions over the tens of billions of dollars its U.S. rivals are spending on cutting-edge chips and AI infrastructure. During an interview with DataDirect Networks chief executive Alex Bouzari, Huang said he thinks DeepSeek's reasoning models, R1, which it released in January ahead of the stock rout, will lead to more demand for computing power, because reasoning is "fairly compute intensive." "I think the market responded to R1 as in 'Oh my gosh, AI is finished. It dropped out of the sky, we don't need to do any computing anymore,'" Huang said. "It's exactly the opposite." Huang also noted that R1 is "the world's first reasoning model that's open-source," meaning developers and consumers can freely use it. "It is so incredibly exciting, the energy around the world as a result of R1 becoming open-sourced. Incredible," Huang said. Earlier this month, JPMorgan U.S. Equity Research (JPM-1.39%) analysts said in a report that DeepSeek is likely to have a positive impact on Nvidia. DeepSeek's demonstration of cost-efficiency and AI innovation will lead to "strong demand" for higher-performance graphics processing units, or GPUs, the analysts said. Therefore, Nvidia's leadership in advanced AI chips "should enable them to unlock new use-cases." Nvidia is expected to report fiscal fourth quarter earnings next week.

Nvidia's Jensen Huang has some strong words for DeepSeek -- and they're probably not what you think

It's not all bad news for DeepSeek, at least not from Jensen Huang In a quarterly earnings call on Wednesday, Nvidia CEO Jensen Huang had some surprising commentary on DeepSeek R1, the controversial AI model that has exploded in popularity over the past few months. DeepSeek is a new AI model that quickly became a ChatGPT rival after its U.S. launch in December 2024. According to the model's developers, DeepSeek was trained for far less money and with less powerful hardware than ChatGPT, yet it performs on a similar level. Those shocking claims were part of what triggered a record-breaking market value loss for Nvidia in January. Given its meteoric rise, it's not surprising that DeepSeek came up in Nvidia's earnings call this week, but what is surprising is how CEO Jensen Huang addressed it. Nvidia's quarterly earnings call on February 26 closed out with a question about DeepSeek, the now-infamous AI model that sparked a $593 billion single-day loss for Nvidia. Huang doesn't seem to be holding a grudge about the loss, though, commenting: "DeepSeek R1 has ignited global enthusiasm. It's an excellent innovation. But more importantly, it has open-sourced a world-class AI reasoning model. Nearly every AI developer is applying R1, or chain-of-thought or reinforcement learning techniques like R1 to scale their models' performance." Considering the market disruption DeepSeek caused, one might expect Huang to bristle at the ChatGPT rival, so it's refreshing to see him sharing praise for what DeepSeek has accomplished. It's important to note that Huang specifically highlighted how DeepSeek could enhance other AI models since they can copy the LLM's homework from its open-source code. While DeepSeek cost Nvidia billions, its investors may be hoping DeepSeek's innovation will drive demand for Nvidia's GPUs from other developers, making up for the loss. Huang seemed to back that attitude up, noting, "Demand for Blackwell is amazing as reasoning AI adds another scaling law -- increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter." Unfortunately for DeepSeek, not everyone in the tech industry shares Huang's optimism. Qualcomm CEO Rene Haas predicted in an interview last month that DeepSeek will "get shut down," at least in the United States. Haas's prediction seems to be based more on political factors than the actual tech behind DeepSeek. As he briefly pointed out, "Think about it . . . if you're not going to allow a TikTok, why would you allow this?" On top of that, DeepSeek still has to prove itself in the competitive AI market. While it has some advantages, ChatGPT has still proven superior in other ways and OpenAI will certainly be ramping up development to stay ahead. Plus, DeepSeek is facing privacy concerns similar to those TikTok has had to contend with for years now, which could drive some users away. It remains to be seen how DeepSeek will fare in the AI arms race, but praise from Nvidia's Jensen Huang is no small feat. We'll have to wait and see if the innovation he highlighted from DeepSeek continues.

Is Nvidia Facing DeepSeek Threat: What's Jensen Huang's Future Plan?

In response to the question about the progress of Deep Seek, Jensen Huang admitted to competition but didn't seem perturbed over what might happen to Nvidia's market share. Nvidia offers many years of experience, in addition to having a deep ecosystem and continued innovations. So, it gives the company a different identity. As per Huang, analysts have agreed on the confidence of the former, stating that, as of now, nothing threatens the Nvidia monopoly in AI and gaming. DeepSeek, the newbie in town, has created quite a stir with its affordable AI solutions. Some industry 'experts' are already raising their eyebrows and suggesting that, in time, this company could develop into an evil threat to companies such as Nvidia. However, Huang's composure in the earnings call seemed to indicate that Nvidia cares less about external competition than about following its growth path. Huang also mapped out Nvidia's plans moving ahead: the investment in cutting-edge and collaborations with important players in the tech industry. This is expected to cement even more of Nvidia's lead in the sector. Investors welcomed Nvidia's earnings results with the utmost enthusiasm. The shares rose sharply after the announcement, reflecting the investors' confidence that the company can maintain its momentum. Tech players and analysts alike can see the light for Nvidia even as the competition continues to mature.

After $600 billion Nvidia wipeout and losing nearly 20% of his personal net worth during DeepSeek rout, Jensen Huang hits back, says investors 'Got it wrong on selloff'

Nvidia CEO Jensen Huang addressed concerns after a significant market drop due to the launch of DeepSeek's R1 AI model, which triggered fears of reduced demand for Nvidia's chips. Huang claimed that advanced AI models still depend heavily on Nvidia's computing power, especially for post-training processes, and assured that Nvidia remains crucial in the AI future.Nvidia CEO Jensen Huang addressed investors' concerns after his company faced a market wipeout that erased nearly $600 billion from its market value, as per a report. The tech giant's stock plunged due to the release of Chinese AI startup DeepSeek's R1 reasoning model, which led to investor fears that the demand for Nvidia's high-performance chips could soon fade. According to Fortune, Huang explained that the market's reaction to DeepSeek's R1 model was based on a misunderstanding. Huang acknowledged that DeepSeek's new model was impressive, but he also claimed that future AI models will continue to depend heavily on Nvidia's computing power, especially when it comes to post-training processes that refine AI systems, as per the report. After the release of DeepSeek's R1 model, which allegedly used cheaper and lower-capability chips, it sent shockwaves through the market, as per reports. As it sparked fears that big tech companies would reduce their need for Nvidia's advanced chips. According to Fortune, this misperception led to Nvidia's stock taking a major hit, and Huang personally lost nearly 20% of his net worth. However, Nvidia has since rebounded, recovering much of its losses. Huang attributed the panic to what he claimed was a flawed understanding among the investor community. He said "I think the market responded to R1 as an- Oh my gosh, AI is finished," as quoted by Fortune. He pointed out that the release caused some investors to believe that AI companies no longer needed high-powered computing. In reality, he explained, the demand for such computing power is only increasing as the AI sector continues to evolve, as per the report. According to Huang, there's been a misconception in the market about the relationship between AI pretraining and inference. He claimed "I don't know whose fault it is, but obviously, that paradigm is wrong," as quoted in the report. Huang made it clear that AI scaling, particularly when it comes to improving AI models' reasoning abilities, still requires immense computing resources, and Nvidia remains central to that process, as per the report. According to Fortune, despite the concerns sparked by DeepSeek's R1 model, Huang took the opportunity to praise the Chinese startup's efforts, calling the excitement around the open-sourcing of R1 "incredible." He also noted that DeepSeek's advancements have garnered praise from some of the biggest names in tech, including Google's Sundar Pichai, Apple's Tim Cook, and Microsoft's Satya Nadella, even as the launch led to a massive $1 trillion loss in US tech stocks. Why did Nvidia's stock drop? The stock dropped after DeepSeek's R1 AI model made investors worry that Nvidia's chips wouldn't be needed as much in the future. This panic led to a massive selloff. What did Jensen Huang say about DeepSeek's AI model? Huang called DeepSeek's R1 model "impressive," but he believes AI will still rely heavily on Nvidia's chips for refining models after their initial training.

Jensen Huang Says 'DeepSeek Was Fantastic:' Next-Gen Models Demand 100x More Compute As Nvidia Smashes Earnings Records - NVIDIA (NASDAQ:NVDA)

Nvidia Corp. NVDA CEO Jensen Huang said Wednesday that next-generation artificial intelligence models need "100 times more compute" than earlier versions, citing new reasoning approaches that process information step by step. What Happened: "The amount of computation necessary to do that reasoning process is 100 times more than what we used to do," Huang told CNBC following the company's record-breaking fourth-quarter earnings report. The chipmaker reported $39.3 billion in revenue for the quarter, up 78% year-over-year and exceeding analyst expectations of $38.05 billion. Data center revenue, which includes Nvidia's market-leading GPUs for AI workloads, surged 93% to $35.6 billion, now representing over 90% of total revenue. Huang specifically mentioned DeepSeek's R1, OpenAI's GPT-4 and xAI's Grok 3 as models utilizing reasoning processes that require substantially more computing power. This comes despite a 17% stock drop in January triggered by concerns that DeepSeek had found ways to achieve better AI performance with lower infrastructure costs. "DeepSeek was fantastic," Huang said. "It was fantastic because it open-sourced a reasoning model that's absolutely world class." See Also: Bitcoin Tumbles Below $85,000 Amid President Trump's EU Tariff Threats Why It Matters: The company has faced challenges in China due to export restrictions, with Huang noting that Nvidia's percentage of revenue from China has fallen by about half. He added that Nvidia's GB200 chip, sold in the United States, can generate AI content 60 times faster than versions sold to China under export controls. Looking ahead, Nvidia projects first-quarter revenue of $43 billion, exceeding analyst expectations of $41.75 billion. Huang emphasized strong demand for the company's new Blackwell AI supercomputers, which achieved "billions of dollars in sales in its first quarter." "Demand for Blackwell is amazing as reasoning AI adds another scaling law - increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter," Huang said. Read Next: Salesforce Shares Sink After Q4 Revenues Miss Estimates, Weak FY26 Guidance: Details Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. NVDANVIDIA Corp$129.322.12%OverviewMarket News and Data brought to you by Benzinga APIs

Nvidia shows Big Tech's AI spending spree is still going strong

The chipmaker reported revenue of $39.3 billion for the fourth quarter of fiscal year 2025 -- a 78% increase from the previous year, and above the consensus of $38.1 billion. Fiscal first quarter guidance was set at $43 billion, plus or minus 2% -- also above Wall Street's expectations of $42 billion. "It was logical to be concerned about the ramping of Blackwell, but we have now successfully ramped Blackwell," Nvidia CEO Jensen Huang said during a post-earnings appearance on CNBC (CMCSA+0.87%). Huang added that he believes Nvidia is "successfully behind the air pocket" in demand over which investors raised concerns as customers transitioned from Hopper to Blackwell. "We're going to have a good quarter next quarter. And we've got a fairly good pipeline of demand for Blackwell," Huang said. Jefferies (JEF+0.59%) analysts said in a note on Thursday that "[t]he supply chain should continue to improve," and that they "see no signs of demand issues," for Blackwell. Ahead of earnings results, analysts were optimistic that the chipmaker would beat expectations and raise its outlook as it ramps up Blackwell production -- despite shockwaves from Chinese AI startup DeepSeek. "The recent setback in Nvidia's stock from DeepSeek and the narrative that AI demand would decline proved unfounded as customers continue to race to scale AI infrastructure, largely with Nvidia chips," Sean Sun, a portfolio manager at Thornburg Investment Management, said in comments shared with Quartz. Richard Windsor, founder of research firm Radio Free Mobile, also said he doesn't think DeepSeek will "clobber demand for Nvidia's data centre chips" in comments shared with Quartz. The chipmaker's expectations for the current fiscal year "look to be about right which combined with the good visibility that I think the company has means that there will be few surprises this year," Windsor said. Meanwhile, concerns by investors over Nvidia's top customers designing their own custom chips "appear overdone," Sun said. "Nvidia's ecosystem advantages and software stack remain formidable barriers to entry." On its post-earnings call, Nvidia said the reasoning AI models over which firms such as OpenAI and Google are competing "can require 100x more compute per task compared to one-shot inferences." The company "is uniquely positioned to capture this exponential growth," Sun said.

Nvidia's AI empire under siege? Nvidia's AI dominance at a turning point; Earnings report to reveal market confidence, tech giants' investments, and the future of AI chip demand

Nvidia, a leading name in artificial intelligence (AI) hardware, is set to announce its fourth-quarter earnings this Wednesday. This report comes at a pivotal time, as the tech giant faces questions about its future in the AI industry. Recently, China's AI startup DeepSeek introduced low-cost AI models that claim to match the performance of Western counterparts. This development has led investors to question the necessity of Nvidia's high-end chips, especially when more affordable alternatives are emerging. In January, Nvidia experienced a staggering $593 billion loss in market value in a single day, the largest in U.S. history, following DeepSeek's announcement. Despite these challenges, Nvidia is projected to report a 72% increase in revenue, reaching $38.05 billion for the fourth quarter. However, this marks its slowest growth in seven quarters. The company's net profit is also expected to rise by 5% to $21 billion. Also Read : James Carville sounds the alarm, declares GOP doom and predicts Donald Trump's collapse within 4-6 weeks Nvidia's latest Blackwell chip series has seen increased shipments, contributing to the anticipated revenue boost. However, the rollout faced initial setbacks due to design flaws and production issues, which have since been addressed. The complexity of these new chips has also led to a slight decrease in adjusted gross margins, expected to shrink by over three percentage points to 73.5% in the fourth quarter. Major clients like Microsoft and Meta have indicated plans to continue significant investments in data-center infrastructure, suggesting sustained demand for Nvidia's AI chips. These companies' capital expenditure plans paint a positive picture for Nvidia's near-term prospects. Nvidia's CEO, Jensen Huang, addressed concerns following the stock sell-off triggered by DeepSeek's advancements. He emphasized that the market's reaction was based on a misunderstanding, highlighting the ongoing need for Nvidia's computing power, especially for post-training methods that enhance AI models after their initial development. While Nvidia faces new competition from companies like DeepSeek, analysts remain optimistic about its growth potential. The company's continuous technological advancements and strong client relationships position it well in the evolving AI landscape. However, investors should monitor upcoming earnings reports and market developments closely to make informed decisions. Also Read : As US-Ukraine relations exploded last week, Donald Trump's insiders sound alarm, say, Zelensky must flee immediately as Putin closes in Is Nvidia still the leader in AI chips? Yes, Nvidia remains dominant, but competition from companies like DeepSeek is growing. Are tech giants still buying Nvidia's AI chips? Yes, companies like Microsoft and Meta continue investing in Nvidia's AI technology.

Nvidia's chip demand faces scrutiny as DeepSeek stirs doubts on AI spending

The world's second most valuable company has been the top beneficiary of an AI-driven spending spree by big technology companies over the past two years.Demand for Nvidia's pricey artificial intelligence chips will be in focus when the company reports results on Wednesday as investors doubt the hefty spending on the technology after low-cost AI models from China's DeepSeek rattled the industry. The world's second most valuable company has been the top beneficiary of an AI-driven spending spree by big technology companies over the past two years. But claims that DeepSeek's AI models rival its Western counterparts at a fraction of the cost has led some investors to ask if Nvidia's cutting-edge chips are essential for gaining an edge in AI race. DeepSeek's sudden rise in January resulted in Nvidia losing $593 billion in market value, the largest one-day loss for any U.S. company. Its shares were one of the best performers in 2023 and 2024. "Investors have been very concerned about DeepSeek and the impact that it will have on demand," said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. "So if they (Nvidia) can show that they're still able to 'beat and raise', it would be pretty positive for the stock." Nvidia is expected to report a 72% surge in revenue to $38.05 billion in its fourth quarter, according to LSEG data, its slowest growth in seven quarters. It is likely to forecast a 60% jump in revenue for the first quarter ending April. In contrast, the company's revenue has seen five straight quarters of triple-digit growth until the quarter ended October. So far, demand for Nvidia's AI chips has not faltered. Big customers such as Microsoft and Meta have said they plan to plow ahead with their steep data-center spending. "The CapEx plans communicated by Meta, Microsoft, Google and Amazon ..... paint a very positive picture of the near-term demand backdrop for Nvidia," said John Belton, a portfolio manager at Gabelli Funds which holds Nvidia shares. Meanwhile, shipments of Nvidia's powerful Blackwell chips are expected to have accelerated in the fourth quarter, boosting its revenue but squeezing its margin due to the cost of ramping a new and complex chip. Analysts expect Nvidia's adjusted gross margin to shrink by more than three percentage points to 73.5% in the fourth quarter. With Blackwell series, Nvidia is shifting from selling individual chips to full AI computing systems such as the GB200 NVL72, which bundle GPUs, CPUs and networking equipment. That has further complicated a costly and time-consuming production ramp-up. Its contract manufacturer, Taiwan's TSMC, scrambled to expand capacity for advanced packaging - a complex process that glues together chips and is the main bottleneck in AI semiconductor supply chains. Blackwell's rollout was also hampered by design flaws and low chip yields - although Nvidia has since fixed the issues. In November, it said Blackwell would exceed initial revenue projections of several billion dollars in the fourth quarter. "Blackwell has been a complicated set of products to launch," said . "With the magnitude of out-performance that investors have become used to - Nvidia's delivery could be smaller this time around, just given some of these dynamics with the Blackwell launch."

NVIDIA's CEO Jensen Huang Addresses The "DeepSeek Fiasco" For The First Time; Says Investors "Overreacted" & "Got It All Wrong"

NVIDIA's CEO Jensen Huang has publicly addressed China's DeepSeek for the first time, claiming that the investors overreacted and got the "paradigm wrong." NVIDIA's CEO Believes DeepSeek's AI Achievement Is Massive For The Markets, Appreciating Their Open-Source Models The release of DeepSeek's R1 AI models was a massive milestone for the AI markets, but for Team Green, it was an ugly day. The firm saw a whopping $600 billion decline in market value, with Jensen losing over 20% of his net worth, clearly showing investors weren't happy with DeepSeek's achievement. However, in the latest interview with DDN, NVIDIA's CEO Jensen Huang has expressed excitement towards DeepSeek's milestone and, at the same time, believes that investors' perception of AI markets went wrong. From an investor perspective, there was a mental model that the world was pre-training and then inference. And inference was: you ask an AI a question, and you instantly got an answer. I don't know whose fault it is, but obviously that paradigm is wrong. It is so incredibly exciting. The energy around the world as a result of R1 becoming open-sourced, incredible. - NVIDIA's CEO via Business Insider For those who still aren't aware of why the stock sell-off got triggered, the news around DeepSeek's R1 being trained for around $5 million raised the perception that the demand for AI computing power is artificial in the markets. However, DeepSeek's "low-training" costs were only a FUD, and it was reported that DeepSeek employs well over $1 billion in AI hardware, showing that the firm, too, needs massive computing power. However, one area where DeepSeek managed to tap into is having robust "open-sourced" AI models, which means that developers can join in to enhance the product further, and it allows organizations and individuals to fine-tune the AI model however they like, allowing it to run on localized AI environments and tapping into hardware resources with the best efficiency. Prior to DeepSeek, the perception was general against open-sourcing models, mainly due to the fact that OpenAI drove the hype. All eyes are on NVIDIA's upcoming earnings call, which is slated for February 26. The call will likely give us insight into how big of a hit the firm has seen on profitability rates following the DeepSeek fiasco and recent Blackwell AI product issues. However, it is safe to say that with competition from DeepSeek, it is certain that demand for computing power is all around NVIDIA.

Nvidia signals strong AI chip demand despite DeepSeek threat

Nvidia has signalled no drop in demand for its flagship chips among big artificial intelligence (AI) spenders despite the low-cost challenge posed by Chinese rival DeepSeek. The leading AI chipmaker said it expected Blackwell sales to continue to grow after its latest earnings beat market expectations. Nvidia forecast revenue of around $43bn (£34bn) for its first quarter after achieving a figure of $39.3bn (£31bn) over its last three months - up 12% from the previous quarter and 78% from one year ago. Just a month ago, its shares took a hammering when it emerged DeepSeek's primary chatbot, which uses lower-cost chips, had become the most popular free application on Apple's App Store across the US. Nvidia's shares lost almost $600bn in market value in a day. It also prompted investors to question whether the AI-led stock market rally of recent years was overblown. There was anxiety ahead of Nvidia's earnings report though shares only fell fractionally in after-hours dealing. Market analysts suggested demand from Microsoft, Amazon and other heavyweight tech companies racing to build AI infrastructure remained robust, given Nvidia's revenue guidance even though the bulk of it is accounted for through data centres. Read more: What is DeepSeek? Nvidia founder Jensen Huang said Nvidia has ramped up the massive-scale production of Blackwell and achieved "billions of dollars in sales in its first quarter". "Demand for Blackwell is amazing as reasoning AI adds another scaling law - increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter. "AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionise the largest industries," he said. Derren Nathan, head of equity research at Hargreaves Lansdown, said of the report: "The longer-term investment case for the driver of the AI train is looking difficult to pick holes in, with Meta's $200bn just one of the latest mega investments in data centres to be unveiled recently. "By virtue of scale, growth may be slowing a little but upgrades to analysts full-year numbers can be expected off the back of today's results. At a around 30x forward earnings, the valuation still doesn't look overcooked."

Nvidia CEO Jensen Huang says market got it wrong about DeepSeek's impact | TechCrunch

Nvidia founder and CEO Jensen Huang said the market got it wrong when it comes to DeepSeek's technological advancements and its potential to negatively impact the chipmaker's business. Instead, Huang called DeepSeek's R1 open source reasoning model "incredibly exciting" while speaking with Alex Bouzari, CEO of DataDirect Networks, in a pre-recorded interview that was released on Thursday. "I think the market responded to R1, as in, 'Oh my gosh. AI is finished,'" Huang told Bouzari. "You know, it dropped out of the sky. We don't need to do any computing anymore. It's exactly the opposite. It's [the] complete opposite." Huang said that the release of R1 is inherently good for the AI market and will accelerate the adoption of AI as opposed to this release meaning that the market no longer had a use for compute resources -- like the ones Nvidia produces. "It's making everybody take notice that, okay, there are opportunities to have the models be far more efficient than what we thought was possible," Huang said. "And so it's expanding, and it's accelerating the adoption of AI." He also pointed out that, despite the advancements DeepSeek made in pre-training AI models, post-training will remain important and resource-intensive. "Reasoning is a fairly compute-intensive part of it," Huang added. Nvidia declined to provide further commentary. Huang's comments come almost a month after DeepSeek released the open source version of its R1 model which rocked the AI market in general and seemed to disproportionately affect Nvidia. The company's stock price plummeted 16.9% in one market day upon the release of DeepSeek's news. Nvidia's stock closed at $142.62 a share on January 24, according to data from Yahoo Finance. The following Monday, January 27, the stock dropped rapidly and closed at $118.52 a share. This event wiped $600 billion off of Nvidia's market cap in just three days. The chip company's stock has almost fully recovered since then. On Friday the stock opened at $140 a share, which means the company has been able to almost fully regain that lost value in about a month. Nvidia reports its Q4 earnings on February 26 which will likely address the market reaction more. Meanwhile, DeepSeek announced on Thursday that it plans to open source five code repositories as part of an "open source week" event next week.

Market panic fizzles as DeepSeek fuels even greater demand for Nvidia chips, company's H20 chips fly off shelves in China as AI breakthrough ignites demand

DeepSeek's affordable AI models have raised demand for Nvidia's H20 AI chips. Nvidia's revenue and market position have benefited significantly, with major Chinese companies like Tencent and Alibaba increasing their orders. Nvidia's stock has also rebounded from initial declines, showing strong market confidence in Nvidia despite new AI model developments.Contrary to early fears that DeepSeek's new AI model would damage demand for Nvidia's chips, the reverse has happened, as per a report. Chinese companies seek to buy Nvidia's H20 AI chips as DeepSeek's cost-efficient and affordable AI models have led to an increase in demand for these chips, reported Reuters. China's leading tech giants, such as Tencent, Alibaba, and ByteDance, have surged their orders for Nvidia's H20 chips, according to Reuters. The chips are specifically tailored for the Chinese market under US export controls and are currently the company's leading products in the country. According to analyst estimates, Nvidia shipped approximately 1 million H20 chips in 2024, which brought in around $12 billion of the company's annual revenue of $60.922 billion, reported Reuters. DeepSeek has claimed to produce efficient models with less expensive chips, which led the market to fear that demand for Nvidia's powerful chips would fall, as per reports. But now DeepSeek's AI models have actually triggered higher demand for Nvidia's H20. Even smaller Chinese firms in the healthcare and education sectors are spending on AI-optimized servers based on DeepSeek's models, driving demand for Nvidia's chips well beyond the usual big-tech buyers, as per Reuters. Nvidia had suffered a $600 billion decline in its market capitalization after the launch of DeepSeek's R1 AI model, reported Fortune. However, reports have claimed that demand for its chips would persist regardless of DeepSeek's efficiency, and Nvidia's stock has recovered most of its lost value since then. Nvidia's CEO Jensen Huang, reassured investors that the market's response to DeepSeek's breakthrough was based on a misunderstanding. In a recent interview, Huang emphasized that future AI models would still need Nvidia's computing power, especially when refining and improving their capabilities in post-training, reported Fortune. Industry analysts believe that Nvidia's market supremacy will continue, and many predict DeepSeek's AI models will propel more companies towards leveraging Nvidia's chips. Wedbush analyst Dan Ives pointed out that DeepSeek's breakthroughs accelerated demand for more companies heading down the AI paths in 2025, reported Fortune. According to Forrester's senior analyst, Alvin Nguyen, DeepSeek established a new and lower base of performance for generative AI, which has allowing more organizations to experiment with it, reported Fortune. Nguyen said, "This should not have an immediate impact on NVIDIA since demand for their GPUs exceeds their ability to supply," as quoted in the report. He also said that in the "long term, this allows competitors like AMD and Intel to gain a foothold in the lower end of the AI infrastructure market." Why did Nvidia's share price fall after DeepSeek's release? Nvidia's shares fell initially on fears that DeepSeek's lower-cost AI models could cut demand for Nvidia's chips. What are Nvidia's H20 chips for? Nvidia's H20 chips are made for use in the Chinese market.

Nvidia's chip demand faces scrutiny as DeepSeek stirs doubts on AI spending

(Reuters) - Demand for Nvidia's pricey artificial intelligence chips will be in focus when the company reports results on Wednesday as investors doubt the hefty spending on the technology after low-cost AI models from China's DeepSeek rattled the industry. The world's second most valuable company has been the top beneficiary of an AI-driven spending spree by big technology companies over the past two years. But claims that DeepSeek's AI models rival its Western counterparts at a fraction of the cost has led some investors to ask if Nvidia's cutting-edge chips are essential for gaining an edge in AI race. DeepSeek's sudden rise in January resulted in Nvidia losing $593 billion in market value, the largest one-day loss for any U.S. company. Its shares were one of the best performers in 2023 and 2024. "Investors have been very concerned about DeepSeek and the impact that it will have on demand," said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. "So if they (Nvidia) can show that they're still able to 'beat and raise', it would be pretty positive for the stock." Nvidia is expected to report a 72% surge in revenue to $38.05 billion in its fourth quarter, according to LSEG data, its slowest growth in seven quarters. It is likely to forecast a 60% jump in revenue for the first quarter ending April. In contrast, the company's revenue has seen five straight quarters of triple-digit growth until the quarter ended October. So far, demand for Nvidia's AI chips has not faltered. Big customers such as Microsoft and Meta have said they plan to plow ahead with their steep data-center spending. "The CapEx plans communicated by Meta, Microsoft, Google and Amazon ..... paint a very positive picture of the near-term demand backdrop for Nvidia," said John Belton, a portfolio manager at Gabelli Funds which holds Nvidia shares. Meanwhile, shipments of Nvidia's powerful Blackwell chips are expected to have accelerated in the fourth quarter, boosting its revenue but squeezing its margin due to the cost of ramping a new and complex chip. Analysts expect Nvidia's adjusted gross margin to shrink by more than three percentage points to 73.5% in the fourth quarter. With Blackwell series, Nvidia is shifting from selling individual chips to full AI computing systems such as the GB200 NVL72, which bundle GPUs, CPUs and networking equipment. That has further complicated a costly and time-consuming production ramp-up. Its contract manufacturer, Taiwan's TSMC, scrambled to expand capacity for advanced packaging - a complex process that glues together chips and is the main bottleneck in AI semiconductor supply chains. Blackwell's rollout was also hampered by design flaws and low chip yields -- although Nvidia has since fixed the issues. In November, it said Blackwell would exceed initial revenue projections of several billion dollars in the fourth quarter. "Blackwell has been a complicated set of products to launch," said Gabelli's Belton. "With the magnitude of out-performance that investors have become used to - Nvidia's delivery could be smaller this time around, just given some of these dynamics with the Blackwell launch." (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Arun Koyyur)

Nvidia's Chip Demand Faces Scrutiny as DeepSeek Stirs Doubts on AI Spending

(Reuters) - Demand for Nvidia's pricey artificial intelligence chips will be in focus when the company reports results on Wednesday as investors doubt the hefty spending on the technology after low-cost AI models from China's DeepSeek rattled the industry. The world's second most valuable company has been the top beneficiary of an AI-driven spending spree by big technology companies over the past two years. But claims that DeepSeek's AI models rival its Western counterparts at a fraction of the cost has led some investors to ask if Nvidia's cutting-edge chips are essential for gaining an edge in AI race. DeepSeek's sudden rise in January resulted in Nvidia losing $593 billion in market value, the largest one-day loss for any U.S. company. Its shares were one of the best performers in 2023 and 2024. "Investors have been very concerned about DeepSeek and the impact that it will have on demand," said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. "So if they (Nvidia) can show that they're still able to 'beat and raise', it would be pretty positive for the stock." Nvidia is expected to report a 72% surge in revenue to $38.05 billion in its fourth quarter, according to LSEG data, its slowest growth in seven quarters. It is likely to forecast a 60% jump in revenue for the first quarter ending April. In contrast, the company's revenue has seen five straight quarters of triple-digit growth until the quarter ended October. So far, demand for Nvidia's AI chips has not faltered. Big customers such as Microsoft and Meta have said they plan to plow ahead with their steep data-center spending. "The CapEx plans communicated by Meta, Microsoft, Google and Amazon ..... paint a very positive picture of the near-term demand backdrop for Nvidia," said John Belton, a portfolio manager at Gabelli Funds which holds Nvidia shares. Meanwhile, shipments of Nvidia's powerful Blackwell chips are expected to have accelerated in the fourth quarter, boosting its revenue but squeezing its margin due to the cost of ramping a new and complex chip. Analysts expect Nvidia's adjusted gross margin to shrink by more than three percentage points to 73.5% in the fourth quarter. With Blackwell series, Nvidia is shifting from selling individual chips to full AI computing systems such as the GB200 NVL72, which bundle GPUs, CPUs and networking equipment. That has further complicated a costly and time-consuming production ramp-up. Its contract manufacturer, Taiwan's TSMC, scrambled to expand capacity for advanced packaging - a complex process that glues together chips and is the main bottleneck in AI semiconductor supply chains. Blackwell's rollout was also hampered by design flaws and low chip yields -- although Nvidia has since fixed the issues. In November, it said Blackwell would exceed initial revenue projections of several billion dollars in the fourth quarter. "Blackwell has been a complicated set of products to launch," said Gabelli's Belton. "With the magnitude of out-performance that investors have become used to - Nvidia's delivery could be smaller this time around, just given some of these dynamics with the Blackwell launch." (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Arun Koyyur)

Nvidia's earnings to be a test of AI chip demand as DeepSeek sows spending doubts

Feb 24 (Reuters) - Demand for Nvidia's pricey artificial intelligence chips will be in focus when the company reports results on Wednesday as investors doubt the hefty spending on the technology after low-cost AI models from China's DeepSeek rattled the industry. The world's second most valuable company has been the top beneficiary of an AI-driven spending spree by big technology companies over the past two years. But claims that DeepSeek's AI models rival its Western counterparts at a fraction of the cost has led some investors to ask if Nvidia's cutting-edge chips are essential for gaining an edge in AI race. DeepSeek's sudden rise in January resulted in Nvidia losing $593 billion in market value, the largest one-day loss for any U.S. company. Its shares were one of the best performers in 2023 and 2024. "Investors have been very concerned about DeepSeek and the impact that it will have on demand," said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. "So if they (Nvidia) can show that they're still able to 'beat and raise', it would be pretty positive for the stock." Nvidia is expected to report a 72% surge in revenue to $38.05 billion in its fourth quarter, according to LSEG data, its slowest growth in seven quarters. It is likely to forecast a 60% jump in revenue for the first quarter ending April. In contrast, the company's revenue has seen five straight quarters of triple-digit growth until the quarter ended October. So far, demand for Nvidia's AI chips has not faltered. Big customers such as Microsoft (MSFT.O), opens new tab and Meta (META.O), opens new tab have said they plan to plow ahead with their steep data-center spending. "The CapEx plans communicated by Meta, Microsoft, Google and Amazon ..... paint a very positive picture of the near-term demand backdrop for Nvidia," said John Belton, a portfolio manager at Gabelli Funds which holds Nvidia shares. Meanwhile, shipments of Nvidia's powerful Blackwell chips are expected to have accelerated in the fourth quarter, boosting its revenue but squeezing its margin due to the cost of ramping a new and complex chip. Analysts expect Nvidia's adjusted gross margin to shrink by more than three percentage points to 73.5% in the fourth quarter. With Blackwell series, Nvidia is shifting from selling individual chips to full AI computing systems such as the GB200 NVL72, which bundle GPUs, CPUs and networking equipment. That has further complicated a costly and time-consuming production ramp-up. Its contract manufacturer, Taiwan's TSMC (2330.TW), opens new tab, scrambled to expand capacity for advanced packaging - a complex process that glues together chips and is the main bottleneck in AI semiconductor supply chains. Blackwell's rollout was also hampered by design flaws and low chip yields -- although Nvidia has since fixed the issues. In November, it said Blackwell would exceed initial revenue projections of several billion dollars in the fourth quarter. "Blackwell has been a complicated set of products to launch," said Gabelli's Belton. "With the magnitude of out-performance that investors have become used to - Nvidia's delivery could be smaller this time around, just given some of these dynamics with the Blackwell launch." Reporting by Arsheeya Bajwa in Bengaluru; Editing by Arun Koyyur Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Nvidia sees mixed outlook after 2 years of blowout results

Sales will be about US$43 billion in the fiscal first quarter, which runs through April, Nvidia said in a statement. Analysts had estimated $42.3 billion on average, with some projections ranging as high as $48 billion. The company also warned that gross profit margins would be tighter than anticipated as it rushes to roll out a new chip design called Blackwell. And there's the risk of US tariffs weighing on results. After fluctuating between gains and losses, Nvidia shares rose about 1% in premarket trading on Thursday. The mixed outlook comes at a shaky time for the AI industry. Nvidia shares have dipped this year on concerns that data center operators will slow spending. Chinese startup DeepSeek also has sparked fears that chatbots can be developed on the cheap, potentially reducing the need for Nvidia's powerful chips for AI. Though Nvidia executives addressed most of those issues, it's become harder for the company to produce blockbuster earnings reports. "Guidance was slightly underwhelming," Edward Jones analyst Logan Purk said in a report. But early sales of the Blackwell chip should help ease investor concerns after earlier reports of production delays, he said. The company got $11 billion of revenue from Blackwell in the fourth quarter, something Nvidia described as the "fastest product ramp" in its history. "Demand for Blackwell is amazing," Chief Executive Officer Jensen Huang said in the statement. Though the company's fiscal fourth-quarter sales topped analysts' estimates, they did so by the smallest margin since February 2023. Earnings, meanwhile, had the narrowest amount of upside since November 2022, according to data compiled by Bloomberg. The stock had been down 2.2% this year, following stratospheric gains in 2023 and 2024 that turned Nvidia into the world's most valuable chipmaker. Nvidia has been the biggest beneficiary of a massive surge in AI spending, doubling the size of its revenue the past two years. Many of the largest technology companies are pouring tens of billions of dollars into data center hardware, and Nvidia is the dominant seller of processors that create and run AI software. Along the way, Nvidia and its CEO have become synonymous with the AI revolution -- and the biggest bellwether for how it's progressing. Huang has spent much of the past two years crisscrossing the world as an evangelist for AI technology and believes it's still in the early stages of spreading throughout the economy. Sales in the fourth quarter, which ended Jan. 26, rose to $39.3 billion. That matched estimates, though some projections ranged as high as $42 billion. Underlining just how quickly the company has grown: Its latest quarterly sales were bigger than Nvidia's annual revenue two years ago, when it totaled $27 billion. Profit was 89 cents a share, minus certain items. Wall Street was looking for 84 cents. "We will grow strongly in 2025," Huang said during a conference call with analysts. The data center unit, by far Nvidia's biggest source of revenue, generated sales of $35.6 billion. That beat the average estimate of $34.1 billion. Gaming-related sales -- once Nvidia's core business -- amounted to $2.5 billion. Analysts projected $3.02 billion on average. Automotive was $570 million. The data center division alone now has more revenue than rivals Intel Corp. and Advanced Micro Devices Inc. generate in total, combined. Nvidia made its name by selling graphics processors, but discovered that the technology also has applications for AI. Its chips help software models during the training process, when they learn to recognize and respond to real-world inputs. Nvidia's components are also used in systems that then run the software, a stage known as inference, and help power services such as ChatGPT. Heading into the earnings report, analysts had expressed concern about near-term growth in Nvidia's biggest business, which serves data center customers. The big question was whether supply constraints and a shift to Blackwell would slow growth. The new technology is more sophisticated, bringing manufacturing challenges. DeepSeek added to the worries after releasing a powerful AI model that it said required far fewer resources to create. The announcement in late January led to a widespread selloff in AI-related shares. Nvidia shed a staggering $589 billion of capital in one day of trading, a record for the markets. But key Nvidia customers, such as Microsoft Corp., have maintained their capital expenditure plans, suggesting that the AI spending surge will remain strong. During the conference call, Huang argued that DeepSeek will stoke interest in a new approach to AI, expanding demand for Nvidia products. The DeepSeek model relies on fine-tuning, so it will require more computing sessions than the "one shot" training of other software, he said. In fact, the approach might require millions of times more computing power than today, he said. "Future reasoning models can consume much more compute," Huang said, calling DeepSeek's model "an excellent innovation." Though Blackwell will help handle those computing tasks, the rollout has come at a cost. The expense of getting the product to market has weighed on profit margins, Nvidia said. The savings will come later when the company is able to refine its supply chain, according to Chief Financial Officer Colette Kress. Gross margin, or the percent of revenue remaining after deducting the cost of production, will return to a "mid-70s" percentage by the end of the year. In the current quarter, that measure will be about 71%, Nvidia said, about a point below the average of analysts' estimates. Nvidia has only missed analysts' estimates on quarterly revenue once in the past five years. And it has exceeded expectations by more than 10% in recent periods, creating a high bar for its performance. "We think it will be challenging for management to continue to significantly beat expectations for future growth," Edwards Jones' Purk said.

9 takeaways from Nvidia's $39B quarter -- and what's next

Nvidia disclosed its financial results for the fourth fiscal quarter on February 26, 2025, reporting $39.3 billion in revenue, $0.89 adjusted earnings per share, and $22.1 billion of net income. The results provide insights into Nvidia's performance amid the backdrop of the recent release of the less tech-intensive DeepSeek AI model from China, which previously resulted in the company experiencing the largest single-day market value loss in stock market history. The company reported revenue of $39.3 billion for the fourth quarter, exceeding consensus analyst estimates of $38.1 billion. This represents a year-over-year revenue growth of 78% and profit growth of 71%. Nvidia's datacenter unit, which includes the graphics processing units (GPUs) that power most generative AI models, generated $35.6 billion in sales, surpassing forecasts of $33.5 billion. Nvidia anticipates spring quarter revenue to reach approximately $43 billion, in line with Wall Street estimates of $42.7 billion. This quarter marks the weakest top and bottom-line growth for Nvidia since the quarter ending April 2023, although its growth remains robust compared to competitors. For context, Apple recently reported only 4% revenue growth and 10% profit expansion. Prior to the earnings report, Nvidia shares rose nearly 4% to close at $131.28, although the stock faced a decline of approximately 10% over the previous month, partly due to market reactions following the DeepSeek AI release. The stock was trading around 10% below its levels before the prior earnings report in November. Nvidia's earnings call revealed detailed financial metrics. Data center revenue for fiscal 2025 reached $115.2 billion, more than doubling from the prior year, spurred by demand for Blackwell and Hopper 200 products. The Blackwell product ramp is noted as the fastest in the company's history, generating $11 billion in revenue during the fourth quarter alone. Gaming revenue was reported at $2.5 billion for the fourth quarter, down 22% sequentially and 11% year-on-year, while full-year gaming revenue was up 9% at $11.4 billion. Professional visualization revenue increased to $511 million in Q4, marking a 10% year-on-year rise. Automotive revenue surged by 103% year-on-year to $570 million for the fourth quarter, with full-year automotive revenue hitting $1.7 billion, up 55% from the previous year. Gross margins were reported as 73% under GAAP, with a non-GAAP gross margin of 73.5% for the fourth quarter. Operating expenses rose by 9% sequentially under GAAP, while they increased by 11% non-GAAP. In total, Nvidia returned $8.1 billion to shareholders during the fourth quarter through share repurchases and cash dividends. The company's outlook for Q1 includes expected revenue in the range of $43 billion, with GAAP and non-GAAP gross margins anticipated to be 70.6% and 71%, respectively. Despite declines in networking revenue by 3%, projections suggest a return to growth in the upcoming quarter. Additionally, Nvidia's gaming revenue has been impacted by supply constraints, and sales from China's data centers remain below prior levels due to ongoing export controls, presenting challenges in manufacturing and gross margin improvements. During the earnings call, CEO Jensen Huang addressed questions about the company's strategy regarding machine learning and the simultaneous ramp-up of their Blackwell and Blackwell Ultra systems, indicating the importance of NVIDIA's architecture in meeting increasing demands for AI workloads.

Nvidia earnings beat expectations and signal strong AI chip demands

Nvidia's quarterly earnings surpassed analysts' expectations, signalling artificial intelligence demands remained strong. However, the company's revenue growth slowed due to the base effect. Nvidia reported fourth-quarter earnings for fiscal year 2025 that exceeded market expectations and provided a positive outlook for the current quarter. However, the performance was not as much of a blowout result as in the previous quarters. Its revenue growth also slowed due to the annual base effect. Nvidia's share price initially rose nearly 3% but later fell more than 1% in after-hours trading. Nvidia has been the biggest beneficiary of the AI boom since 2023, thanks to surging demand for its Graphic Processing Units (GPUs). Its share price soared 1000% over the past two years, with a market valuation topping $3 trillion (€2.86 trillion), making it the world's second-largest company behind Apple. However, the slowdown in its revenue growth signals that the AI boom may have passed its peak at least for now. Its earnings result came at a time when investors were rotating out of US tech stocks amid risk-off sentiment, while the Chinese DeepSeek's AI model, offering a cheaper alternative, diverted funds from Wall Street to Chinese tech firms. Investors are scrutinising whether hyperscalers continued their heavy spending on AI infrastructure, translating into Nvidia's data centre sales. Consequently, its earnings became even more critical in driving broad market sentiment, especially after Microsoft signalled plans to cut its spending on its capital expenditure. "Nvidia is the bellwether for AI demand, and this result will once again alleviate the naysayers," Josh Gilbert, a market analyst at eToro Australia, wrote in a note. Blackwell deliveries ramp up The spotlight was on Nvidia's Blackwell, the most advanced computing chips supporting generative AI programming. During the reporting quarter, the company delivered $11 billion worth of these products, which is "the fastest product ramp in our company's history," it stated. Nvidia indicated that Blackwell sales were driven by large cloud service providers and represented 50% of its data center revenue. CEO Jessen Huang commented: "Demand for Blackwell is amazing as reasoning AI adds another scaling law -- increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter." Slowing growth Nvidia's sales from its key segment-the data centre reached a new record of $35.6 billion (€34 billion) in the fourth quarter, up 93% from a year ago. However, this marks the first time that growth slowed to below 100% since the second quarter of fiscal year 2024. The full-year revenue for the division has also surged to a record high of $115.2 billion (€110 billion), increasing 142% year on year. The company's overall revenue grew 78% to a record high of $39.3 billion (€37.5 billion), which was also the slowest pace since the AI boom in early 2023. Earnings per share came in at $0.89 (€0.85), beating the estimated $0.84 (€0.8). However, its gross margin fell to 73.5% from 75% in the previous quarter and 76.7% in a year-ago quarter. Its second-largest segment - the gaming and AI PC - saw revenue declined by 11% year on year to $2.5 billion (€2.4 billion). However, this had little impact on Nvidia's performance, as it only accounts for just 6% of the total revenue. For the current quarter, Nvidia projects total sales of $43 billion (€41 billion), plus or minus 2%, representing 65% growth year on year. While the guidance exceeded analysts' expectations, it indicates that the company's growth is set to slow further. Additionally, it expects the gross margin to decrease further to between 70.6% and 71%, plus or minus 50 basis points, suggesting increased spending on new product developments.

DeepSeek May Not Hurt Chip Demand, After All

Shortly after the NVIDIA sell-off, Netherlands-based ASML, a chip-making equipment manufacturer, saw shares jump nearly 9%. In the past month, while AI enthusiasts celebrated the Chinese AI startup DeepSeek's low-cost R-1 model, which was built with minimal GPUs and capital, the market responded rather brutally. NVIDIA lost nearly $600 billion as its stocks tumbled 17% owing to the efficiency with which the model was built. More recently, DeepSeek-V3 used just 2,048 NVIDIA H800 GPUs to outperform most open-source models. In contrast, xAI's Grok-3 was trained on over 100,000 GPUs, yet beats DeepSeek-R1 by just a small margin. This made the chip market question whether such large numbers of GPUs were even needed to train these models. However, the story has multiple layers, and DeepSeek's achievements may not hurt the chip demand after all. Experts speculate that the Chinese company may not be revealing the whole truth. During an interview, the CEO of Scale AI, Alexandr Wang, said that he believed DeepSeek possessed around 50,000 NVIDIA H100s, but wasn't permitted to talk about it. NVIDIA chief Jensen Huang recently addressed this market reaction, asserting that investors misinterpreted the implications of the Chinese firm's developments. During a conversation with DDN's Alex Bouzari, he emphasised that DeepSeek's R1 model was built using less powerful chips and significantly lower funding than their Western counterparts. This led to the dramatic sell-off of NVIDIA stocks. "From an investor perspective, there was a mental model that the world was pre-training, and the inference was that you ask an AI a question, which instantly gives you an answer. I don't know whose fault it is, but obviously, that paradigm is wrong," he said. However, Huang believes this reaction stemmed from a misunderstanding of the AI landscape, particularly the ongoing need for high-performance computing in post-training processes, which is essential for AI functionality. He pointed out that while DeepSeek's innovations are exciting and energising for the AI sector, they do not diminish the demand for NVIDIA's chips. Huang explained that post-training methods -- where AI models make predictions or draw conclusions after initial training -- remain critical and require substantial computing power. As DeepSeek continues to generate interest and discussion across various tech sectors, including earnings calls of major companies like Airbnb and Palantir, it is clear that its impact on AI development will be significant. Analysts have noted that while DeepSeek's cost-effective approach may disrupt traditional chip demand, it could also increase competition and innovation within the semiconductor industry. Companies like AMD and Intel may find opportunities to expand their market presence as AI adoption grows, driven by more accessible technologies. Shortly after the NVIDIA sell-off, Netherlands-based ASML, a leading manufacturer of chip-making equipment, saw shares jump nearly 9% when the company reported a sharp rise in net bookings in the fourth quarter ending December 2024. Earlier that week, ASML's stock had suffered a blow amid the global tech sell-off following DeepSeek's rollout of its R1 reasoning model, which claims to outperform OpenAI's o1 in both cost and efficiency. The launch had raised concerns that AI firms might reduce spending on advanced chips, potentially impacting ASML's extreme ultraviolet (EUV) machines, which produce high-end semiconductors. However, CEO Christophe Fouquet dispelled the fears of a slowdown, stating that lower AI costs could drive greater demand for semiconductors. "A lower cost of AI could mean more applications. More applications mean more demand over time. We see that as an opportunity for more chip demand," Fouquet told CNBC. As a result, ASML said net bookings totalled €7.09 billion, marking a 169% increase from the previous quarter. The figure exceeded analyst expectations of €3.99 billion, signalling continued demand for its chipmaking tools. The company's net sales reached €9.26 billion, surpassing the expected €9.07 billion, and its net profit was €2.69 billion, slightly above the €2.64 billion forecast. Despite concerns, ASML's latest results suggested continued strength in semiconductor demand, reinforcing its position as a key supplier in the AI-driven chip industry.

Nvidia revenues up 80% from 'amazing' demand for AI chips

Chip-making giant Nvidia has beaten Wall Street expectations with its latest earnings, with a nearly 80% jump in revenue year-on-year due to sales of its artificial intelligence-centered microchips. In a Feb. 26 earnings report for its 2025 fiscal year and fourth quarter ended Jan. 26, Nvidia announced revenues of $39.3 billion for the quarter -- up 12% from its previous quarter and up 78% from the same quarter a year ago. Zacks Investment Research said Wall Street revenue estimates pegged revenue at only $37.72 billion, while earnings per share of 89 cents beat expectations of 84 cents. Nvidia founder and CEO Jensen Huang said on an earnings call that the earnings uptick was thanks to "amazing" demand for its microchip Blackwell -- designed for AI, machine learning and high-performance computing. "AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries." Nvidia's data center revenue accounted for over 90% of the firm's total revenues, hitting $35.6 billion, up 93% from a year ago. Shares in Nvidia Corp (NVDA) closed trading on Feb. 26 up 3.67% to $131.28, according to Google Finance. It's still down from its all-time high set In November when the stock closed at over $147. Late last month, on Jan. 27, Nvidia saw the largest one-day value drop in US stock market history when its shares closed down nearly 17% -- wiping out almost $600 billion in value amid investor panic after Chinese AI firm DeepSeek released a model that reportedly rivaled OpenAI's ChatGPT. Huang has previously said his firm is focused on being at the forefront of agentic AI as the race around the tech heats up. Other US firms have also begun ramping up AI expansion. Microsoft said in September that it was establishing two AI centers in Abu Dhabi, which was among the significant AI investments throughout 2024. At the same time, Bitcoin (BTC) mining companies have been diversifying their income streams to include AI, converting some of their crypto mining operations over to help run compute-intensive large language models. Related: Trump swings axe on Biden's sweeping AI executive order In August, asset manager VanEck estimated that if publicly traded Bitcoin mining companies shifted 20% of their energy capacity to AI and high-performance computing by 2027, they could increase additional yearly profits by $13.9 billion over 13 years. The decline in Nvidia's valuation is considered a "bullish development" for Bitcoin, according to a Jan. 27 report by research firm 10x Research. The firm suggested that reduced spending on AI could help ease inflation, which could lead to more favorable monetary policy from the US Federal Reserve.

After DeepSeek, Nvidia and the AI boom hyper scalers that hoard its chips face new questions

Other types of foundational models like DeepSeek, using a relatively bootstrapped budget with comparatively little compute power, are already starting to pop up. Chinese AI company DeepSeek had a quick rise to fame in January upon the release of its latest model, DeepSeek-R1, temporarily dethroning OpenAI's ChatGPT as the most downloaded free app on Apple's App Store. Behind the scenes, AI enablers -- companies building the infrastructure and applications that enable AI -- felt the heat of a shaken market. But despite Nvidia stock falling more than 15% in a single trading day, a result of the market's realization that AI model development can be done on thinner margins and with lower-quality resources than anticipated, these AI enablers are still creating AI-specific semiconductor chips, building out compute power and developing platforms that foundation models can use to operate. "On one hand, the DeepSeek approach showed that you can optimize your model building process so that you require much lower compute power. That has a negative impact on Nvidia," said Mohamed Elgendy, co-founder and CEO of enterprise AI platform Kolena. "However, the obvious thing is now you'll find a lot of people building foundation models. Foundation models are not going to be just for the top five companies or so that have hundreds of millions of dollars to build the infrastructure." Nvidia shares are down close to 9% so far in 2025, though that is after a remarkable run that saw its share price rise close to 500% over the past two years. The chip giant reports earnings after the close on Wednesday, with DeepSeek and the potential hit to future spending by AI "hyper scalers" -- companies like Google, Oracle, Amazon and Microsoft -- who buy up to half of Nvidia's AI chips, expected to receive attention from anxious Wall Street analysts and investors. Elgendy's reasoning lies in the belief that DeepSeek's model release marks a shift in the industry, which he believes will now move towards greater democratization, the results of which have already started to be produced, with additional LLMs hitting the market for as little as $50, according to researchers. "The days before DeepSeek are different from days after DeepSeek," he said. "While many researchers focus on the critical pursuit of greater computational and data efficiency in AI models, the need for robust infrastructure will remain paramount," wrote Jad Tarifi, CEO of foundation world model company Integral AI, who formerly led Google's first generative AI development team, in his 2024 book "The Rise of Superintelligence." Tarifi went on, "Even as models streamline, anticipated real-world deployments will ensure a growing demand for powerful computational resources." Amr Awadallah, CEO of enterprise AI agent company Vectara, has a slightly different view. "I see this as the start of significant margin compression for AI model builders and the large AI enablers that supply them," he said. "Revenue across the industry will continue to grow, and grow a lot, but the amount of profit that these large companies can extract will go down significantly, so it will create some pressure from that perspective." Recent reports that Microsoft was scaling back its AI data center buildout spooked investors for this reason, but Microsoft has disputed the reports, saying it is committed to its stated $80 billion spend, but adding that it might "strategically pace or adjust our infrastructure in some areas." Awadallah likens this shift to the history of flash drives, which take a lot of design to make right but are now a common commodity with lower profits than before. DeepSeek was able to train its model on lower-end hardware, without access to the high-end ones major U.S. companies use, effectively commoditizing the market. DeepSeek itself runs on Intel's processors Xeon and Gaudi, which are "helping customers get strong performance at lower costs," according to an Intel spokesperson. Intel's Gaudi is also being used for Denvr Dataworks, which offers AI solutions that prioritize both performance and data privacy. "New AI models bring exciting opportunities, but they also raise important considerations. They can drive innovation, improve efficiency and unlock new possibilities, but scaling AI comes with challenges like cost, energy use and responsible deployment," an Intel spokesperson told CNBC. For its part, Intel says its products and services take these obstacles into account.

Nvidia sales surge in fourth quarter on demand for AI chips

AP - Nvidia reported a surge in fourth-quarter profit and sales as demand for its specialised Blackwell chips, which power artificial intelligence systems, continued to grow, sending the company's stock higher after hours. For the three months that ended January 26, the tech giant based in Santa Clara, California, posted revenue of USD39.3 billion, up 12 per cent from the previous quarter and 78 per cent from one year ago. Adjusted for one-time items, it earned 89 cents a share. "Demand for Blackwell is amazing as reasoning artificial intelligence (AI) adds another scaling law - increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter," Nvidia founder Jensen Huang said in a statement. Nvidia has ramped up the massive-scale production of Blackwell AI supercomputers, Huang said, "achieving billions of dollars in sales in its first quarter." "AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionise the largest industries," he said. Wednesday's earnings report topped Wall Street expectations. Analysts had been expecting adjusted earnings of 85 cents a share on revenue of USD38.1 billion, according to FactSet. Nvidia reported net income of USD22.06 billion in the fourth quarter, beating analysts' predictions of USD19.57 billion. The tech giant expected sales to continue to grow, forecasting revenue of around USD43 billion for the first quarter of fiscal 2026. Data centre sales, which account for much of Nvidia's revenues, were a core part of that uptick - fourth-quarter revenue was USD35.6 billion, up 93 per cent from one year ago. The growth in the data centre market comes as President Donald Trump has talked up a joint venture investing up to USD500 billion for infrastructure tied to AI through a new partnership formed by OpenAI, Oracle and SoftBank. The Stargate project will start building out data centres and the energy generation needed for the further development of AI, according to the White House. Nvidia is a partner in that project. On an earnings call on Wednesday afternoon, Nvidia Chief Financial Officer Colette Kress said that fourth-quarter Blackwell sales exceeded the company's expectations. "We delivered USD11 billion of Blackwell architecture revenue in the fourth quarter of fiscal 2025, the fastest product ramp in our company's history," Kress said. "Blackwell sales were led by large cloud service providers which represented approximately 50 per cent of our data center revenue." The poster child of the AI boom, Nvidia has grown into the second-largest company on Wall Street - it is now worth over USD3 trillion - and the stock's movement carries more weight on the S&P 500 and other indexes than every company except Apple. Two years ago, Nvidia's market value was below USD600 billion. Nvidia and other companies benefiting from the AI boom have been a major reason the S&P 500 has climbed to record after record recently, with the latest coming last week. Their explosion of profits has helped to propel the market despite worries about stubbornly high inflation and possible pain coming for the US economy from tariffs and other policies of President Donald Trump. But those tariffs are still "an unknown," Kress said, until Nvidia can better understand what the Trump administration's plan is. "We are awaiting," she said, adding that the company would follow any export controls or tariff rules. The fourth-quarter earnings are the company's first report since Chinese company DeepSeek boasted it had developed a large language model that could compete with ChatGPT and other US rivals, but was more cost-effective in its use of Nvidia chips to train the system on troves of data. The frenzy over DeepSeek caused USD595 billion in Nvidia's wealth to vanish briefly. But the company in a statement commended DeepSeek's work as "an excellent AI advancement" that leveraged "widely-available models and compute that is fully export control compliant". "DeepSeek R1 has ignited global enthusiasm," Huang said on Wednesday's earnings call. "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, or chain of thought and reinforcement learning techniques like R1, to scale their models' performance." Speaking to investors, Huang said the "next wave" of AI is coming with "agentic AI for enterprise, physical AI for robotics and sovereign AI as the different regions build out their AI for their own ecosystems." "We're in the centre of much of this development," Huang said.

Jensen Huang: 'No Technology Has Ever Touched More Of The World's GDP Than AI' But Nvidia Shares Slip In After-Hours Trading - NVIDIA (NASDAQ:NVDA)

NVIDIA Corp NVDA CEO Jensen Huang said during the company's fourth-quarter earnings call that "No technology has ever had the opportunity to address a larger part of the world's GDP than AI." What Happened: This assertion, made as NVIDIA reported a staggering 78% year-over-year revenue increase to $39.3 billion for the fourth quarter, reflects how artificial intelligence rapidly transcends its initial applications to permeate virtually every economic sector. Huang elaborated on this vision by emphasizing AI's transition from specialized tool to mainstream software. "AI is modern software... AI has gone mainstream," he noted, highlighting how the technology now underpins everyday services from e-commerce and delivery to education and healthcare. What makes this claim particularly significant is the historical context. Previous technological revolutions -- from steam power to electricity to computing -- each transformed substantial portions of economic activity. Yet Huang suggests AI's reach could be even more expansive, potentially touching nearly every industry simultaneously. See Also: Bitcoin Tumbles Below $85,000 Amid President Trump's EU Tariff Threats Why It Matters: The company's forecast of $43 billion in revenue for the first quarter of 2026 underscores the accelerating adoption curve. Unlike previous technologies that often required decades to fully permeate industries, AI is being deployed at unprecedented speed. From traditional enterprises to startups, organizations worldwide are racing to implement AI capabilities, creating what Huang describes as the beginnings of a new era just two years into this transition. Price Action: Nvidia closed at $131.28 on Wednesday, up 3.67%. In after-hours trading, the stock fell 1.49% to $129.32. Year to date, NVDA is down 5.08%, according to data from Benzinga Pro. Read Next: Salesforce Shares Sink After Q4 Revenues Miss Estimates, Weak FY26 Guidance: Details Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. NVDANVIDIA Corp$129.322.12%OverviewMarket News and Data brought to you by Benzinga APIs

Nvidia's AI Expansion: 5 Key Takeaways From Earnings | The Motley Fool

Nvidia (NVDA -8.48%) reported fourth-quarter fiscal 2025 earnings on February 26, 2025, delivering another record quarter amid surging artificial intelligence (AI) demand. The company posted Q4 revenue of $39.3 billion, up 78% year-over-year, and provided strong guidance for continued growth. The new Blackwell architecture saw remarkable initial uptake, with $11 billion in revenue during its first quarter of availability. This represents the fastest product ramp in Nvidia's history. We successfully and incredibly ramped up Grace Blackwell, delivering some $11 billion of revenues last quarter. We're going to have to continue to scale as demand is quite high, and customers are anxious and impatient to get their Blackwell systems. -- Jensen Huang, CEO The complex manufacturing process spans 350 plants producing 1.5 million components per rack, showcasing Nvidia's ability to execute at scale. Early deployments include major cloud providers like Microsoft Azure, Google Cloud Platform, AWS and Oracle Cloud Infrastructure. Management highlighted three distinct scaling laws driving compute demand: pre-training, post-training, and inference time scaling. Post-training tasks can now require more compute than initial training. The amount of computation you use for post-training is actually higher than pre-training. ... The amount of tokens generated [and] the amount of inference compute needed is already 100x more than the one-shot examples and the one-shot capabilities of large language models in the beginning. And that's just the beginning. -- Jensen Huang, CEO This evolution suggests expanding infrastructure requirements as AI applications mature and become more sophisticated. Data center revenue reached $35.6 billion in the fourth quarter, up 93% year-over-year. While China revenue remains around half of pre-export-control levels, strong U.S. demand helped drive 16% sequential growth. Data center revenue of $35.6 billion was a record, up 16% sequentially and 93% year-on-year, as the Blackwell ramp commenced and Hopper 200 continued sequential growth. -- Colette Kress, CFO The company expects China to maintain its current percentage of revenue going forward, suggesting other regions can sustain growth trajectories. Management confirmed the upcoming launch of Blackwell Ultra in the second half of 2025, maintaining its annual product cadence. They also referenced development of the next-generation "Vera Rubin" architecture. The next train is on an annual rhythm and Blackwell Ultra with new networking, new memories and of course, new processors, and all of that is coming online. We have been working with all of our partners and customers, laying this out. -- Jensen Huang, CEO The system architecture compatibility between Blackwell and Blackwell Ultra should enable smoother customer transitions compared to previous generations. Gross margins will remain in the low 70s as Blackwell ramps, with improvement opportunities once initial production stabilizes. During our Blackwell ramp, our gross margins will be in the low 70s. At this point, we are focusing on expediting our manufacturing ... to make sure that we can provide to customers as soon as possible. -- Colette Kress, CFO Management cited multiple opportunities to improve costs and margins once initial production goals are met. Nvidia's management expressed confidence in sustained demand, highlighting the expanding role of AI across industries. The company appears well-positioned with its full stack approach spanning hardware, networking, and software. As CEO Jensen Huang emphasized:

Nvidia's H20 chip orders jump as Chinese firms adopt DeepSeek's AI models, sources say

SINGAPORE/BEIJING (Reuters) - Chinese companies are ramping up orders for Nvidia's H20 artificial intelligence chip due to booming demand for DeepSeek's low-cost AI models, six people familiar with the matter said. The surge in orders, which is being reported for the first time by Reuters, underlines Nvidia's dominance of the market and could help alleviate concerns that DeepSeek might cause a slide in AI chip demand. Tencent, Alibaba and ByteDance have "significantly increased" orders of the H20 - a chip specific to China due to U.S. export controls - since the Chinese AI startup burst into the global public consciousness last month, two of the people said. In addition to their internal needs for advanced AI chips, the three tech giants provide cloud computing services through which other firms can access and use AI tools. Smaller companies in sectors like healthcare and education are also purchasing AI servers equipped with DeepSeek models and Nvidia H20 chips, said a source at one of China's largest server makers. Previously only deep-pocketed financial and telecoms firms bought servers with AI computing systems, the source added. U.S. President Donald Trump's administration is looking at imposing restrictions on the sale of the H20 chip to China, Reuters has reported. While the threat of further controls could be a factor in the jump in orders, the sources cited DeepSeek as the reason. The sources did not provide details on the size of the orders. They were not authorised to speak to media and declined to be identified. Nvidia did not respond to queries on how much demand for the H20 it was seeing from China but said its products won "on merit in a competitive field". The company is set to report quarterly earnings on Wednesday. Tencent, ByteDance and Alibaba did not respond to requests for comment. DeepSeek's large language models rival Western systems in performance at a fraction of the cost as they focus on "inference" or producing conclusions. That optimises computational efficiency rather than relying solely on raw processing power. "When DeepSeek launched, many misjudged that computing power demand might stagnate or decrease. In reality, more advanced AI models drive deeper integration into daily life, exponentially increasing inference-level compute need," said Nori Chiou, investment director at Singapore-based White Oak Capital Partners. A DeepSeek-induced global rout in AI stocks that began January 24 saw Nvidia shares lose as much as a fifth of their value at one point but they have since regained most of that ground and are down just 3% for the year to date. Though wider deployment of DeepSeek AI models is expected to help Chinese chipmakers such as Huawei better compete in the domestic market thanks to the models' focus on inference, Nvidia's H20 chip remains the industry standard in China. Analysts estimate Nvidia shipped approximately 1 million H20 units in 2024, generating over $12 billion in revenue for the company. The H20 is the primary chip Nvidia is legally permitted to sell in China and was launched after the latest round of U.S. export restrictions took effect in October 2023. Washington has banned exports of Nvidia's most advanced chips to China since 2022, concerned that advanced technologies could be used by China to build up its military capabilities. Numerous Chinese companies have announced plans to use DeepSeek's models. Among them are Tencent, which has said it will beta test integrating the models into its highly popular WeChat messaging app, and automaker Great Wall which has integrated DeepSeek's model into its connected vehicle system. (Reporting by Fanny Potkin in Singapore, Che Pan in Beijing and Brenda Goh in Shanghai; Editing by Edwina Gibbs)

Exclusive: Nvidia's H20 chip orders jump as Chinese firms adopt DeepSeek's AI models, sources say

SINGAPORE/BEIJING, Feb 25 (Reuters) - Chinese companies are ramping up orders for Nvidia's (NVDA.O), opens new tab H20 artificial intelligence chip due to booming demand for DeepSeek's low-cost AI models, six people familiar with the matter said. The surge in orders, which is being reported for the first time by Reuters, underlines Nvidia's dominance of the market and could help alleviate concerns that DeepSeek might cause a slide in AI chip demand. Tencent (0700.HK), opens new tab, Alibaba (9988.HK), opens new tab and ByteDance have "significantly increased" orders of the H20 - a chip specific to China due to U.S. export controls - since the Chinese AI startup burst into the global public consciousness last month, two of the people said. In addition to their internal needs for advanced AI chips, the three tech giants provide cloud computing services through which other firms can access and use AI tools. Smaller companies in sectors like healthcare and education are also purchasing AI servers equipped with DeepSeek models and Nvidia H20 chips, said a source at one of China's largest server makers. Previously only deep-pocketed financial and telecoms firms bought servers with AI computing systems, the source added. U.S. President Donald Trump's administration is looking at imposing restrictions on the sale of the H20 chip to China, Reuters has reported. While the threat of further controls could be a factor in the jump in orders, the sources cited DeepSeek as the reason. The sources did not provide details on the size of the orders. They were not authorised to speak to media and declined to be identified. Nvidia did not respond to queries on how much demand for the H20 it was seeing from China but said its products won "on merit in a competitive field". The company is set to report quarterly earnings on Wednesday. Tencent, ByteDance and Alibaba did not respond to requests for comment. DeepSeek's large language models rival Western systems in performance at a fraction of the cost as they focus on "inference" or producing conclusions. That optimises computational efficiency rather than relying solely on raw processing power. "When DeepSeek launched, many misjudged that computing power demand might stagnate or decrease. In reality, more advanced AI models drive deeper integration into daily life, exponentially increasing inference-level compute need," said Nori Chiou, investment director at Singapore-based White Oak Capital Partners. A DeepSeek-induced global rout in AI stocks that began January 24 saw Nvidia shares lose as much as a fifth of their value at one point but they have since regained most of that ground and are down just 3% for the year to date. Though wider deployment of DeepSeek AI models is expected to help Chinese chipmakers such as Huawei(HWT.UL) better compete in the domestic market thanks to the models' focus on inference, Nvidia's H20 chip remains the industry standard in China. Analysts estimate Nvidia shipped approximately 1 million H20 units in 2024, generating over $12 billion in revenue for the company. The H20 is the primary chip Nvidia is legally permitted to sell in China and was launched after the latest round of U.S. export restrictions took effect in October 2023. Washington has banned exports of Nvidia's most advanced chips to China since 2022, concerned that advanced technologies could be used by China to build up its military capabilities. Numerous Chinese companies have announced plans to use DeepSeek's models. Among them are Tencent, which has said it will beta test integrating the models into its highly popular WeChat messaging app, and automaker Great Wall (601633.SS), opens new tab which has integrated DeepSeek's model into its connected vehicle system. Reporting by Fanny Potkin in Singapore, Che Pan in Beijing and Brenda Goh in Shanghai; Editing by Edwina Gibbs Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Jensen Huang's Nvidia Fuels 'AI Factory' Boom: Revenue Growth In Data Center Business Dominates Peers With A Staggering 3460% Growth Over 5 Years - Intel (NASDAQ:INTC), Advanced Micro Devices (NASDAQ:AMD)

Nvidia Corp. NVDA has reported exceptional fourth-quarter earnings and the semiconductor giant led by Jensen Huang has more than doubled its data center revenue for the full year, posting record quarterly growth compared to its peers. What Happened: The chipmaker's data center revenue exploded in the fourth quarter, hitting a record $35.6 billion. This represents a dramatic 93.5% jump from the same period last year and a solid 15.6% increase from the previous quarter's $30.8 billion. On an annual basis, the revenue for fiscal 2024 was nearly $47.5 billion, which grew more than two times to $115.3 billion in fiscal 2025. The revenue of its peers, Advanced Micro Devices Inc. AMD and Intel Corp. INTC also grew sequentially. However, Intel's revenue dropped from the same quarter last year. "Data centers will increasingly become AI factories, and every company will have either rented or self-operated," said Huang during the earnings call. Highlighting a firm future outlook, Huang added, "We expect sequential growth from both compute and networking." As Wedbush analyst Dan Ives highlighted the company's strength in "AI Revolution," FinChat replied to his X post sharing quarterly data of Nvidia's data center revenue over five years. From $1 billion in the January quarter of 2020, the revenue has grown by 3460% to $35.6 billion in the quarter ended January 2025. See Also: Billionaire Ray Dalio Says AI Risks 'Totalitarian Control Or Anarchy' As It Could Reshape World In Next 5 Years: Here Are AI-Linked ETFs For Investors To Consider Why It Matters: Intel dominated the data center market in 2022, but its reign faltered in 2023 as Nvidia surged ahead. AMD, meanwhile, experienced a slow burn in 2022 and 2023 before igniting in late 2023. Intel's interim CEO, Michelle Holthaus said during its fourth-quarter earnings call that the data center business is an attractive market for the company, "But I am not happy with where we are today." "We're not yet participating in the cloud-based AI data center market in a meaningful way. We have learned a lot as we have ramped Gaudi and we are applying those learnings going forward," she added. Meanwhile, AMD's fourth-quarter data center segment revenue increased 69% year-over-year to a record $3.9 billion. AMD CEO Lisa Su expects strong double-digit growth in its data center business throughout 2025, driven by high demand for both server and GPU products. Price Action: Nvidia rose 3.67% on Wednesday and fell 1.49% in after-hours, this outpaced the 0.24% rise in the Invesco QQQ Trust, Series 1 QQQ, which tracks the Nasdaq 100 index. The stock remains 5.08% lower on a year-to-date basis and up 66.81% over a year. Benzinga tracks 40 analysts with an average price target of $172.28 for the stock, reflecting a "buy" rating. Estimates range widely from $120 to $220. Recent ratings from Rosenblatt, Morgan Stanley, and Tigress Financial average $197.33, suggesting a potential 52.59% upside. Read Next: Mark Cuban Calls Deductibles 'The Biggest Problem' in Healthcare: 'System...Needs To Be Redesigned' Photo courtesy: Shutterstock AMDAdvanced Micro Devices Inc$104.300.33%OverviewINTCIntel Corp$23.472.09%NVDANVIDIA Corp$129.322.12%QQQInvesco QQQ Trust, Series 1$513.09-0.04%Market News and Data brought to you by Benzinga APIs

Nvidia's Earnings Fueled AI Bulls but Still Gave the Bears More Ammo

Nvidia's outlook, too, impressed Wall Street, with first-quarter revenue for fiscal 2026 forecasted to hit roughly $43 billion. "We've successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter," Huang said. "AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries." Nvidia's impact, of course, extends beyond its own balance sheet. Its chips provide the oxygen to the AI economy while its dominance dictates how trillions of dollars in capital are allocated across markets. Here are three takeaways from the blowout results.

Nvidia CEO Attributed The DeepSeek Led Sell-Off To Misconception On 'Post Training' And 'Inference'. 'Obviously That Paradigm Is Wrong'. - NVIDIA (NASDAQ:NVDA)

Jensen Huang, CEO of Nvidia Corporation NVDA, addressed investor concerns regarding the necessity of massive AI infrastructure spending during a virtual event uploaded on Thursday. What Happened: Huang addressed the DeepSeek-led sell-off of the Nvidia shares and said, that investors misinterpreted the DeepSeek's AI advancements. The pre-recorded event, produced by Nvidia partner DDN, was part of the launch of DDN's new software platform, Inifinia. The major reason for the sell-off was due to investors questioning the need for massive AI infrastructure expenditure by Big Tech firms, particularly if models can be trained with lesser computing power. This is a result of DeepSeek's advancements in AI, which investors may have misunderstood, triggering a significant market reaction. The Nvidia Chief clarified that the industry still demands significant computing power for post-training methods, which enable AI models to generate predictions or reach conclusions after training. He emphasized that as these methods diversify and expand, the demand for Nvidia's computing power will also increase. Posted In: NewsMarketsTechartificial general intelligenceBig Tech NvidiaBenzinga simplifies the market for smarter investing Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about. Join Now: Free!Already a member?Sign in

Nvidia CEO Huang says AI has to do '100 times more' computation now than when ChatGPT was released

Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during a news conference in Taipei, Taiwan, on Tuesday, June 4, 2024. Nvidia CEO Jensen Huang said next-generation AI will need 100 times more compute than older models as a result of new reasoning approaches that think "about how best to answer" questions step by step. "The amount of computation necessary to do that reasoning process is 100 times more than what we used to do," Huang told CNBC's Jon Fortt in an interview on Wednesday following the chipmaker's fourth-quarter earnings report. He cited models including DeepSeek's R1, OpenAI's GPT-4 and xAI's Grok 3 as models that use a reasoning process. Nvidia reported results that topped analysts' estimates across the board, with revenue jumping 78% from a year earlier to $39.33 billion. Data center revenue, which includes Nvidia's market-leading graphics processing units, or GPUs, for artificial intelligence workloads, soared 93% to $35.6 billion, now accounting for over 90% of total revenue. The company's stock still hasn't recovered after losing 17% of its value on Jan. 27, its worst drop since 2020. That drop came due to concerns sparked by Chinese AI lab DeepSeek that companies could potentially get greater performance in AI on far lower infrastructure costs. Huang pushed back on that idea in the interview on Wednesday, saying DeepSeek popularized reasoning models that will need more chips. "DeepSeek was fantastic," Huang said. "It was fantastic because it open sourced a reasoning model that's absolutely world class." Nvidia has been restricted from doing business in China due to export controls that were increased at the end of the Biden administration. Huang said that company's percentage of revenue in China has fallen by about half due to the export restrictions, adding that there are other competitive pressures in the country, including from Huawei. Developers will likely search for ways around export controls through software, whether it be for a supercomputer, a personal computer, a phone or a game console, Huang said. "Ultimately, software finds a way," he said. "You ultimately make that software work on whatever system that you're targeting, and you create great software." Huang said that Nvidia's GB200, which is sold in the United States, can generate AI content 60 times faster than the versions of the company's chips that it sells to China under export controls. Nvidia counts on billions of dollars of infrastructure spend annually from the largest tech companies in the world for an outsized amount of its revenue. The company has been the biggest beneficiary of the AI boom, with revenue more than doubling in five straight quarters through mid-2024 before growth decelerated slightly.

Nvidia's H20 chip orders jump as Chinese firms adopt DeepSeek's AI models, sources say

Tencent, Alibaba and ByteDance have "significantly increased" orders of the H20 - a chip specific to China due to U.S. export controls - since the Chinese AI startup burst into the global public consciousness last month, two of the people said.Chinese companies are ramping up orders for Nvidia's H20 artificial intelligence chip due to booming demand for DeepSeek's low-cost AI models, six people familiar with the matter said. The surge in orders, which is being reported for the first time by Reuters, underlines Nvidia's dominance of the market and could help alleviate concerns that DeepSeek might cause a slide in AI chip demand. Tencent, Alibaba and ByteDance have "significantly increased" orders of the H20 - a chip specific to China due to U.S. export controls - since the Chinese AI startup burst into the global public consciousness last month, two of the people said. In addition to their internal needs for advanced AI chips, the three tech giants provide cloud computing services through which other firms can access and use AI tools. Smaller companies in sectors like healthcare and education are also purchasing AI servers equipped with DeepSeek models and Nvidia H20 chips, said a source at one of China's largest server makers. Previously only deep-pocketed financial and telecoms firms bought servers with AI computing systems, the source added. U.S. President Donald Trump's administration is looking at imposing restrictions on the sale of the H20 chip to China, Reuters has reported. While the threat of further controls could be a factor in the jump in orders, the sources cited DeepSeek as the reason. The sources did not provide details on the size of the orders. They were not authorised to speak to media and declined to be identified. Nvidia did not respond to queries on how much demand for the H20 it was seeing from China but said its products won "on merit in a competitive field". The company is set to report quarterly earnings on Wednesday. Tencent, ByteDance and Alibaba did not respond to requests for comment. DeepSeek's large language models rival Western systems in performance at a fraction of the cost as they focus on "inference" or producing conclusions. That optimises computational efficiency rather than relying solely on raw processing power. "When DeepSeek launched, many misjudged that computing power demand might stagnate or decrease. In reality, more advanced AI models drive deeper integration into daily life, exponentially increasing inference-level compute need," said Nori Chiou, investment director at Singapore-based White Oak Capital Partners. A DeepSeek-induced global rout in AI stocks that began January 24 saw Nvidia shares lose as much as a fifth of their value at one point but they have since regained most of that ground and are down just 3% for the year to date. Though wider deployment of DeepSeek AI models is expected to help Chinese chipmakers such as Huawei better compete in the domestic market thanks to the models' focus on inference, Nvidia's H20 chip remains the industry standard in China. Analysts estimate Nvidia shipped approximately 1 million H20 units in 2024, generating over $12 billion in revenue for the company. The H20 is the primary chip Nvidia is legally permitted to sell in China and was launched after the latest round of U.S. export restrictions took effect in October 2023. Washington has banned exports of Nvidia's most advanced chips to China since 2022, concerned that advanced technologies could be used by China to build up its military capabilities. Numerous Chinese companies have announced plans to use DeepSeek's models. Among them are Tencent, which has said it will beta test integrating the models into its highly popular WeChat messaging app, and automaker Great Wall which has integrated DeepSeek's model into its connected vehicle system.

Chinese firms boost Nvidia H20 chip orders amid DeepSeek AI boom- Reuters By Investing.com

Investing.com-- Chinese tech giants are significantly increasing orders for Nvidia's H20 artificial intelligence chips, driven by soaring demand for DeepSeek's low-cost AI models, Reuters reported on Tuesday citing sources familiar with the matter. Tencent (HK:0700), Alibaba (HK:9988), and ByteDance have notably ramped up purchases of the H20 -- a chip tailored for China to comply with U.S. export controls -- as DeepSeek's models gain traction globally, the Reuters report stated. These companies, which also offer cloud computing services, are leveraging the chips both for internal needs and to support customers accessing AI tools, Reuters reported. The surge extends beyond major tech firms. Smaller companies in healthcare and education are acquiring AI servers equipped with DeepSeek's models and Nvidia's H20 chips, a shift from previous trends where such high-powered systems were mainly used by financial and telecom firms, according to the report. The H20 remains the primary chip Nvidia (NASDAQ:NVDA) is allowed to sell in China following tightened regulations in late 2023. Analysts estimate Nvidia shipped around 1 million H20 units in 2024, generating over $12 billion in revenue, the report said. While concerns over potential further U.S. curbs loom, the report stated that DeepSeek's rapid rise -- not geopolitical tensions -- is the key driver behind the surge in orders.

Nvidia Sees Rush For H20 AI Chip Orders As DeepSeek Disrupts AI Market -- Tencent, Alibaba, ByteDance Fuel Demand Surge - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

Chinese tech giants Tencent Holdings TCEHY, Alibaba Group Holdings Ltd BABA, and ByteDance have significantly increased orders for Nvidia Corporation's NVDA H20 AI chips, as the rise of DeepSeek's low-cost AI models drives a surge in demand for AI computing power. What Happened: The spike in H20 chip orders, reported by Reuters, citing six people familiar with the matter, highlights Nvidia's continued dominance in the AI chip market. The H20 is a China-specific chip, developed in response to U.S. export restrictions that prevent Nvidia from selling its most advanced AI hardware to Chinese companies. While concerns about additional U.S. trade restrictions exist, sources say the primary driver behind the demand is DeepSeek's AI models, which optimize computational efficiency for inference tasks rather than relying solely on raw processing power. See Also: Google Sued Over AI Search Overviews -- Education Company Says Tech Giant Is Stealing Content And Driving Publishers Out Of Business These models have gained rapid adoption across industries, from cloud computing to automotive applications. Tencent is reportedly testing DeepSeek's AI models in WeChat, while automaker Great Wall has integrated them into its connected vehicle systems. Analysts estimate Nvidia shipped around 1 million H20 chips in 2024, generating over $12 billion in revenue. Why It Matters: Last month, Nvidia recognized China's DeepSeek R1 AI model. The model built for less than $6 million, allegedly outperformed top U.S. models, including those from OpenAI. This milestone contributed to a broader tech market downturn, leading to a 17% decline in Nvidia's stock and a more than 20% plunge in AI infrastructure shares. It also led to a $600 billion drop in Nvidia's market capitalization. Earlier this month, in an interview, Nvidia CEO Jensen Huang addressed investor concerns, attributing the sell-off to misconceptions about AI infrastructure spending. Price Action: In after-hours trading, Nvidia rose 0.51%, reaching $130.95 at the time of publication, according to Benzinga Pro. Image via Shutterstock Read Next: Elon Musk's $97.4 Billion OpenAI Takeover Bid Reportedly Not Received By ChatGPT Parent: 'Another One Of His Tactics,' Says Sam Altman Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. BABAAlibaba Group Holding Ltd$128.29-10.8%OverviewNVDANVIDIA Corp$130.95-2.59%TCEHYTencent Holdings Ltd$61.64-7.60%Market News and Data brought to you by Benzinga APIs

AI stocks battered heading into make-or-break Nvidia earnings

Feb 25 (Reuters) - Artificial intelligence-linked shares fell on Tuesday, in lead-up to AI bellwether Nvidia's (NVDA.O), opens new tab quarterly earnings, which could offer clarity on demand and justify the sector's lofty valuations. Technology stocks globally sold off this week after a TD Cowen analyst note said Microsoft has canceled leases for sizeable data center capacity in the U.S., with at least two private data-center operators. AI-darling Nvidia dropped 2.1% ahead of its highly anticipated quarterly earnings on Wednesday, where investors will focus on demand for its pricey AI chips after low-cost AI models from China's DeepSeek rattled the industry. "It must be noted that such lulls are not uncommon, especially ahead of a set of results, but bulls of US equities more generally will be looking to Nvidia for reassurance," AJ Bell's investment director Russ Mould said in a note. Chip stocks were also hit following a report that said the U.S. was planning further restrictions on Nvidia's chip exports to China and that Washington was consulting with allies about tightening chip controls on China. Other chipmakers such as Broadcom (AVGO.O), opens new tab and Micron Technology (MU.O), opens new tab were down around 2.1% each, with a gauge of semiconductor stocks (.SOX), opens new tab sliding 1.8%. Investor skepticism has grown over the billions that U.S. tech firms have channeled into AI infrastructure due to slow payoffs and breakthroughs at Chinese startup DeepSeek. Data center operator Digital Realty (DLR.N), opens new tab slipped 1.2%. Vertiv Holdings (VRT.N), opens new tab, which designs and builds data center infrastructure, slipped around 2.3%. Power companies, which are expected to see a surge in demand from energy-intensive data centers needed to develop AI technology, also came under pressure, with Vistra (VST.N), opens new tab dropping 5.9% and Constellation Energy (CEG.O), opens new tab off 3.3%. AI server maker Super Micro Computer (SMCI.O), opens new tab was among the top laggards on the S&P 500 (.SPX), opens new tab, with shares sliding 8.7%, ahead of the deadline for its delayed annual filing. Data analytics firm Palantir (PLTR.O), opens new tab -- a favorite among retail investors to trade AI -- dipped 3.7%. Reporting by Shashwat Chauhan and Medha Singh in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

AI stocks battered heading into make-or-break Nvidia earnings

(Reuters) - Artificial intelligence-linked shares fell on Tuesday, in lead-up to AI bellwether Nvidia's quarterly earnings, which could offer clarity on demand and justify the sector's lofty valuations. Technology stocks globally sold off this week after a TD Cowen analyst note said Microsoft has canceled leases for sizeable data center capacity in the U.S., with at least two private data-center operators. AI-darling Nvidia dropped 2.1% ahead of its highly anticipated quarterly earnings on Wednesday, where investors will focus on demand for its pricey AI chips after low-cost AI models from China's DeepSeek rattled the industry. "It must be noted that such lulls are not uncommon, especially ahead of a set of results, but bulls of US equities more generally will be looking to Nvidia for reassurance," AJ Bell's investment director Russ Mould said in a note. Chip stocks were also hit following a report that said the U.S. was planning further restrictions on Nvidia's chip exports to China and that Washington was consulting with allies about tightening chip controls on China. Other chipmakers such as Broadcom and Micron Technology were down around 2.1% each, with a gauge of semiconductor stocks sliding 1.8%. Investor skepticism has grown over the billions that U.S. tech firms have channeled into AI infrastructure due to slow payoffs and breakthroughs at Chinese startup DeepSeek. Data center operator Digital Realty slipped 1.2%. Vertiv Holdings, which designs and builds data center infrastructure, slipped around 2.3%. Power companies, which are expected to see a surge in demand from energy-intensive data centers needed to develop AI technology, also came under pressure, with Vistra dropping 5.9% and Constellation Energy off 3.3%. AI server maker Super Micro Computer was among the top laggards on the S&P 500, with shares sliding 8.7%, ahead of the deadline for its delayed annual filing. Data analytics firm Palantir -- a favorite among retail investors to trade AI -- dipped 3.7%. (Reporting by Shashwat Chauhan and Medha Singh in Bengaluru; Editing by Alan Barona)

NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2025

NVIDIA today reported revenue for the fourth quarter ended January 26, 2025, of $39.3 billion, up 12% from the previous quarter and up 78% from a year ago. For the quarter, GAAP earnings per diluted share was $0.89, up 14% from the previous quarter and up 82% from a year ago. Non-GAAP earnings per diluted share was $0.89, up 10% from the previous quarter and up 71% from a year ago. For fiscal 2025, revenue was $130.5 billion, up 114% from a year ago. GAAP earnings per diluted share was $2.94, up 147% from a year ago. Non-GAAP earnings per diluted share was $2.99, up 130% from a year ago. "Demand for Blackwell is amazing as reasoning AI adds another scaling law -- increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter," said Jensen Huang, founder and CEO of NVIDIA. "We've successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries." NVIDIA will pay its next quarterly cash dividend of $0.01 per share on April 2, 2025, to all shareholders of record on March 12, 2025. Outlook NVIDIA's outlook for the first quarter of fiscal 2026 is as follows:Revenue is expected to be $43.0 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 70.6% and 71.0%, respectively, plus or minus 50 basis points. GAAP and non-GAAP operating expenses are expected to be approximately $5.2 billion and $3.6 billion, respectively. GAAP and non-GAAP other income and expense are expected to be an income of approximately $400 million, excluding gains and losses from non-marketable and publicly-held equity securities. GAAP and non-GAAP tax rates are expected to be 17.0%, plus or minus 1%, excluding any discrete items. Highlights NVIDIA achieved progress since its previous earnings announcement in these areas: Data CenterFourth-quarter revenue was a record $35.6 billion, up 16% from the previous quarter and up 93% from a year ago. Full-year revenue rose 142% to a record $115.2 billion. Announced that NVIDIA will serve as a key technology partner for the $500 billion Stargate Project. Revealed that cloud service providers AWS, CoreWeave, Google Cloud Platform (GCP), Microsoft Azure and Oracle Cloud Infrastructure (OCI) are bringing NVIDIA GB200 systems to cloud regions around the world to meet surging customer demand for AI. Partnered with AWS to make the NVIDIA DGX Cloud AI computing platform and NVIDIA NIM microservices available through AWS Marketplace. Revealed that Cisco will integrate NVIDIA Spectrum-X into its networking portfolio to help enterprises build AI infrastructure. Revealed that more than 75% of the systems on the TOP500 list of the world's most powerful supercomputers are powered by NVIDIA technologies. Announced a collaboration with Verizon to integrate NVIDIA AI Enterprise, NIM and accelerated computing with Verizon's private 5G network to power a range of edge enterprise AI applications and services. Unveiled partnerships with industry leaders including IQVIA, Illumina, Mayo Clinic and Arc Institute to advance genomics, drug discovery and healthcare. Launched NVIDIA AI Blueprints and Llama Nemotron model families for building AI agents and released NVIDIA NIM microservices to safeguard applications for agentic AI. Announced the opening of NVIDIA's first R&D center in Vietnam. Revealed that Siemens Healthineers has adopted MONAI Deploy for medical imaging AI. Gaming and AI PCFourth-quarter Gaming revenue was $2.5 billion, down 22% from the previous quarter and down 11% from a year ago. Full-year revenue rose 9% to $11.4 billion. Announced new GeForce RTX 50 Series graphics cards and laptops powered by the NVIDIA Blackwell architecture, delivering breakthroughs in AI-driven rendering to gamers, creators and developers. Launched GeForce RTX 5090 and 5080 graphics cards, delivering up to a 2x performance improvement over the prior generation. Introduced NVIDIA DLSS 4 with Multi Frame Generation and image quality enhancements, with 75 games and apps supporting it at launch, and unveiled NVIDIA Reflex 2 technology, which can reduce PC latency by up to 75%. Unveiled NVIDIA NIM microservices, AI Blueprints and the Llama Nemotron family of open models for RTX AI PCs to help developers and enthusiasts build AI agents and creative workflows. Professional VisualizationFourth-quarter revenue was $511 million, up 5% from the previous quarter and up 10% from a year ago. Full-year revenue rose 21% to $1.9 billion. Unveiled NVIDIA Project DIGITS, a personal AI supercomputer that provides AI researchers, data scientists and students worldwide with access to the power of the NVIDIA Grace Blackwell platform. Announced generative AI models and blueprints that expand NVIDIA Omniverse integration further into physical AI applications, including robotics, autonomous vehicles and vision AI. Introduced NVIDIA Media2, an AI-powered initiative transforming content creation, streaming and live media experiences, built on NIM and AI Blueprints. Automotive and RoboticsFourth-quarter Automotive revenue was $570 million, up 27% from the previous quarter and up 103% from a year ago. Full-year revenue rose 55% to $1.7 billion. Announced that Toyota, the world's largest automaker, will build its next-generation vehicles on NVIDIA DRIVE AGX Orin running the safety-certified NVIDIA DriveOS operating system. Partnered with Hyundai Motor Group to create safer, smarter vehicles, supercharge manufacturing and deploy cutting-edge robotics with NVIDIA AI and NVIDIA Omniverse. Announced that the NVIDIA DriveOS safe autonomous driving operating system received ASIL-D functional safety certification and launched the NVIDIA DRIVE AI Systems Inspection Lab. Launched NVIDIA Cosmos, a platform comprising state-of-the-art generative world foundation models, to accelerate physical AI development, with adoption by leading robotics and automotive companies 1X, Agile Robots, Waabi, Uber and others. Unveiled the NVIDIA Jetson Orin Nano Super, which delivers up to a 1.7x gain in generative AI performance. Source: NVIDIA

Europe's top AI plays extend slide, Microsoft data centre worries persist

Some of Europe's most popular AI-linked stocks fell for a second day on Tuesday, after an analyst note late last week that flagged a possible slowdown by Microsoft on data centre leasing knocked sentiment ahead of make-or-break results from Nvidia. Less than a month ago the emergence of China's cheap artificial intelligence DeepSeek model triggered a global selloff in tech shares and a reassessment of how much Western companies are spending on development and key infrastructure such as data centres. TD Cowen analysts said in a note late on Friday that Microsoft had scrapped leases for sizeable U.S. data centre capacity in the United States. Europe has no direct equivalent to either Nvidia, whose chips power a lot of existing AI capability, or Microsoft, but shares in companies that are exposed to datacentres endured a second day of selling. Microsoft has said its AI and cloud capacity investment plans remained on track. Shares in Germany's Siemens Energy, which have soared over 600% since a low in October 2023, fell 3.5% and French electrical equipment maker Schneider Electric lost 2.5%, having dropped by 4% and 6.9%, respectively on Monday. "The market is heavily skewed negative right now around tech sentiment with any whisper of worries/concern from DeepSeek to Microsoft capex causing a brutal ripple impact across the tech ecosystem," Wedbush tech analyst Dan Ives said. Shares in Italy's Prysmian, the world's largest cable maker, fell 2% on Tuesday after ending Monday down 4.5%. Shares in Swiss engineer ABB were down 1%, following a 4.7% drop on Monday, when the company's management held a call with analysts. "ABB thinks this is to allow Microsoft to 'take stock and see where we are' rather than a major inflection," Citigroup analysts said in a note following the call. UBS said it viewed the market response as another "DeepSeek moment" in that it presented a buying opportunity, while Barclays said it may take investors some time to figure out if this latest development is specific to Microsoft, or a sign of a broader shift. Steve Wreford, lead portfolio manager/analyst on the global thematic equity team at Lazard Asset Management and co-manager of around $1.5 billion in assets said AI was still very much a "winner takes all landscape" in terms of big tech spending. "The latest developments at Microsoft may reflect a more measured approach to data centre buildout," he said. Tech shares have been volatile this week ahead of Nvidia's quarterly results on Wednesday that investors will scour for evidence that the company's lofty valuation is justified and the outlook for its products remains robust.

Europe's top AI plays extend slide, Microsoft data centre worries persist

LONDON (Reuters) - Some of Europe's most popular AI-linked stocks fell for a second day on Tuesday, after an analyst note late last week that flagged a possible slowdown by Microsoft on data centre leasing knocked sentiment ahead of make-or-break results from Nvidia. Less than a month ago the emergence of China's cheap artificial intelligence DeepSeek model triggered a global selloff in tech shares and a reassessment of how much Western companies are spending on development and key infrastructure such as data centres. TD Cowen analysts said in a note late on Friday that Microsoft had scrapped leases for sizeable U.S. data centre capacity in the United States. Europe has no direct equivalent to either Nvidia, whose chips power a lot of existing AI capability, or Microsoft, but shares in companies that are exposed to datacentres endured a second day of selling. Microsoft has said its AI and cloud capacity investment plans remained on track. Shares in Germany's Siemens Energy, which have soared over 600% since a low in October 2023, fell 3.5% and French electrical equipment maker Schneider Electric lost 2.5%, having dropped by 4% and 6.9%, respectively on Monday. "The market is heavily skewed negative right now around tech sentiment with any whisper of worries/concern from DeepSeek to Microsoft capex causing a brutal ripple impact across the tech ecosystem," Wedbush tech analyst Dan Ives said. Shares in Italy's Prysmian, the world's largest cable maker, fell 2% on Tuesday after ending Monday down 4.5%. Shares in Swiss engineer ABB were down 1%, following a 4.7% drop on Monday, when the company's management held a call with analysts. "ABB thinks this is to allow Microsoft to 'take stock and see where we are' rather than a major inflection," Citigroup analysts said in a note following the call. UBS said it viewed the market response as another "DeepSeek moment" in that it presented a buying opportunity, while Barclays said it may take investors some time to figure out if this latest development is specific to Microsoft, or a sign of a broader shift. Steve Wreford, lead portfolio manager/analyst on the global thematic equity team at Lazard Asset Management and co-manager of around $1.5 billion in assets said AI was still very much a "winner takes all landscape" in terms of big tech spending. "The latest developments at Microsoft may reflect a more measured approach to data centre buildout," he said. Tech shares have been volatile this week ahead of Nvidia's quarterly results on Wednesday that investors will scour for evidence that the company's lofty valuation is justified and the outlook for its products remains robust. (Reporting by Lucy Raitano and Samuel Indyk in London; Editing by Amanda Cooper and Alexandra Hudson)

Europe's top AI plays extend slide, Microsoft data centre worries persist

LONDON, Feb 25 (Reuters) - Some of Europe's most popular AI-linked stocks fell for a second day on Tuesday, after an analyst note late last week that flagged a possible slowdown by Microsoft on data centre leasing knocked sentiment ahead of make-or-break results from Nvidia (NVDA.O), opens new tab. Less than a month ago the emergence of China's cheap artificial intelligence DeepSeek model triggered a global selloff in tech shares and a reassessment of how much Western companies are spending on development and key infrastructure such as data centres. TD Cowen analysts said in a note late on Friday that Microsoft had scrapped leases for sizeable U.S. data centre capacity in the United States. Europe has no direct equivalent to either Nvidia, whose chips power a lot of existing AI capability, or Microsoft, but shares in companies that are exposed to datacentres endured a second day of selling. Microsoft has said its AI and cloud capacity investment plans remained on track. Shares in Germany's Siemens Energy (ENR1n.DE), opens new tab, which have soared over 600% since a low in October 2023, fell 3.5% and French electrical equipment maker Schneider Electric (SCHN.PA), opens new tab lost 2.5%, having dropped by 4% and 6.9%, respectively on Monday. "The market is heavily skewed negative right now around tech sentiment with any whisper of worries/concern from DeepSeek to Microsoft capex causing a brutal ripple impact across the tech ecosystem," Wedbush tech analyst Dan Ives said. Shares in Italy's Prysmian (PRY.MI), opens new tab, the world's largest cable maker, fell 2% on Tuesday after ending Monday down 4.5%. Shares in Swiss engineer ABB (ABBN.S), opens new tab were down 1%, following a 4.7% drop on Monday, when the company's management held a call with analysts. "ABB thinks this is to allow Microsoft to 'take stock and see where we are' rather than a major inflection," Citigroup analysts said in a note following the call. UBS said it viewed the market response as another "DeepSeek moment" in that it presented a buying opportunity, while Barclays said it may take investors some time to figure out if this latest development is specific to Microsoft, or a sign of a broader shift. Steve Wreford, lead portfolio manager/analyst on the global thematic equity team at Lazard Asset Management and co-manager of around $1.5 billion in assets said AI was still very much a "winner takes all landscape" in terms of big tech spending. "The latest developments at Microsoft may reflect a more measured approach to data centre buildout," he said. Tech shares have been volatile this week ahead of Nvidia's quarterly results on Wednesday that investors will scour for evidence that the company's lofty valuation is justified and the outlook for its products remains robust. Reporting by Lucy Raitano and Samuel Indyk in London; Editing by Amanda Cooper and Alexandra Hudson Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence