The introduction of DeepSeek initially sent Nvidia’s valuation tumbling by hundreds of billions because the Chinese AI seemed to show that new models did not necessarily need to rely on Nvidia’s most expensive, top-of-the-line graphics processing unit (GPU), as most cutting-edge models out of the US do.
Despite the company’s past stellar performance, analysts expect investors to look for other signs that the company will be capable of meeting the moment as demand for the chips that power AI models remains steady.
Some analysts predict the ripples from DeepSeek’s launch may not have an immediate impact on Nvidia but could allow competitors like AMD and Intel to “gain a foothold on the lower end of the AI infrastructure market”, said Alvin Nguyen, a senior analyst at Forrester.
This earnings call will also be the first look at the company’s financials and demand since China’s DeepSeek AI introduced an AI model that beat many of those made in the US while requiring a fraction of the training and investment.
Analysts expect Nvidia to maintain its leadership position as the maker of the AI industry’s favorite chips, but recent news has presented new potential challenges to the company’s ownership of the market.
