NVIDIA, the leading chipmaker powering artificial intelligence advancements, reported robust financial results despite market turbulence sparked by the emergence of Chinese AI firm DeepSeek. The company announced that its chip sales exceeded $39 billion for the quarter ending January 27, marking a 74% increase year-over-year.
Jensen Huang, CEO of NVIDIA, dismissed concerns that demand for its advanced AI chips would decline, saying that the future of software relies on machine learning rather than traditional programming. He explained that AI-driven software development requires a fundamentally different computing architecture, reinforcing the long-term need for NVIDIA’s high-performance chips.
DeepSeek recently claimed to have trained its chatbot using less advanced and lower-cost chips, triggering a sharp sell-off in NVIDIA’s stock. However, investor confidence was restored when major technology firms, including Meta, reaffirmed their AI investment strategies. NVIDIA remains a dominant force in AI hardware, with its chips serving as the backbone for AI initiatives at Microsoft and other leading tech firms.
The company is ramping up production of its latest Blackwell chips, a key driver behind its revenue surge. Collette Kress, NVIDIA’s Chief Financial Officer, noted that the AI data center business remains strongest in the U.S., with growing demand in Europe, fueled by investments from France and the European Union. She also confirmed that sales in China remain lower due to U.S. trade restrictions, and the company anticipates shipments to remain steady at current levels.
With NVIDIA’s market capitalization surpassing $3 trillion and its stock soaring over 400% in two years, the company continues to shape the future of AI computing.
