The AI chip giant Nvidia reported strong sales despite last month’s AI industry shake-up, which saw Chinese chatbot DeepSeek’s emergence send shockwaves through Western tech markets.
Nvidia, which supplies AI chips that can handle the large quantities of data used to train models, reported its first financial results since Chinese tech company DeepSeek sent its stocks plummeting.
In January, when DeepSeek released its latest chatbot R1, audiences were shocked at how advanced its capabilities are – having been created at a fraction of the cost and facing the limitation of strict US-to-China export regulations.
The success of DeepSeek, which rivals OpenAI’s ChatGPT, created uncertainty in the AI market and sent waves through share prices.
Nvidia, widely seen as integral to AI development, was the worst hit, suffering a reported $500 billion market cap decline – the largest single-day market value loss in history.
However, the financial results of the chip giant, reported yesterday, indicate a strong economic outlook despite a 10% dip over the past month.
In the company’s fourth fiscal quarter, it reported $39.3 billion in revenue, year-on-year growth of 78% and profit growth of 71%, Forbes reported.
The US-based giant smashed estimates in a number of areas. Nvidia’s data centre, which powers most Generative AI models, made the company $35.6 billion in sales, beating forecasts of $33.5 billion.
The firm said it expects the next quarter to bring in $43 billion, compared to a slightly lower $42.7 billion estimate from Wall Street analysts.
