Nvidia's head honcho, Jensen Huang, is as optimistic as they come. He's well known for his relentless belief in his firm's potential. Reiterating his previous statements from the latest earnings call this Wednesday, he believes DeepSeek won't negatively affect sales.

The gossip mill claimed that DeepSeek’s R1 model needed significantly fewer chips for training, sparking an unprecedented plunge in Nvidia’s share price just a month ago.

However, during the earnings call, Huang praised R1 as a remarkable innovation, making sure to underline that the so-called reasoning models like R1 are a boon for Nvidia, owing to their increased computing requirements.

"Reasoning AIs require 100 times more computing power, and the ones lined up for the future will need even more," Huang confidently asserted. "DeepSeek R1 has sparked worldwide excitement. It's notably innovative, but more crucially, it's made a top-of-the-line reasoning AI model available to open-source. Almost all AI developers have their hands on R1 now."

Nvidia's sales are showing no signs of slowing. The tech powerhouse recently announced another record-smashing quarter with its revenue soaring to a whopping $39.3 billion, surpassing both its own forecasts and Wall Street predictions. It's actually expecting the revenue graph to rise further to about $43 billion in the coming quarter.

Nvidia's data centre sales saw a twofold growth in 2024, reaching $115 billion. The sales surged 16% quarter on quarter, as per Nvidia's earnings report.

During the call, Huang spotlighted Nvidia's latest offering, the Blackwell chip. He boasted about the chip being explicitly designed for reasoning, and that there's an extraordinary demand for it.

"We are poised to witness significant growth in 2025," pledged Huang.

Contrary to the fretting over DeepSeek last month, it's clear that AI chip market is still very much hot property. Meta, Google, and Amazon have all recently declared colossal investments in AI infrastructure, with an aggregate budget reaching hundreds of billions for the upcoming years.