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Nvidia investors' call gives the chip giant a chance to tell backers why they're wrong about DeepSeek's impact

Feb 24, 2025 - businessinsider.com
Nvidia is set to address investors for the first time since the market panic caused by DeepSeek's AI model, which challenged industry assumptions by using fewer resources than competitors. Despite the initial market reaction, Nvidia aims to reassure investors of its continued dominance in AI, with strong data center revenue projections and ongoing demand from major clients like Microsoft and Meta. The company will highlight its collaboration with OpenAI on Stargate and the expansion of data centers, which are expected to bolster its position.

Key areas of focus include the ramp-up of Nvidia's Blackwell chip series, which, despite initial rollout issues, is anticipated to drive higher profit margins. Additionally, Nvidia will emphasize growth in inference demand and AI applications, which are crucial for long-term success. Investors will also be keen on Nvidia's strategy regarding potential geopolitical challenges, such as U.S.-China relations and tariffs on Taiwan. CEO Jensen Huang's task is to assure investors that Nvidia remains integral to the AI landscape despite these challenges.

Key takeaways:

  • Nvidia aims to reassure investors about the impact of DeepSeek's AI model on its business and highlight continued demand for its chips.
  • Data center revenue is expected to rise, supported by significant investments from major tech companies like Meta and Amazon.
  • The rollout of Nvidia's Blackwell chip series is anticipated to improve, with strong demand expected to boost sales and profit margins.
  • Investors are watching Nvidia's approach to China amid potential policy changes and tariffs that could affect its business operations.
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