Nvidia stock CEO Jensen Huang Emphasized the Company Growing AI Farm
During the earnings report on Nvidia for the quarter ending January, CEO Jensen Huang reiterated the company’s role as an enabler for the AI within its industry. With shares in Nvidia trading down more than 7% on the year prior to the call, Huang attempted to calm the air about wide-raging concerns on AI’s future and Nvidia’s role thereon.
On Thursday, the stock of the tech giant dipped down by another 8%, signifying the long shadow of angst. Investors were spooked by the rise of AI models such as DeepSeek, believed to diminish the demand for Nvidia’s powerful Blackwell GPUs. Concerns were also raised about custom chip programs maturing fast by large tech players, Amazon (AMZN) and Google (GOOG, GOOGL), and hurting Nvidia’s long-term growth.
Huang entered no opening statements but instead allowed analysts to set the tone for the call, addressing their concerns directly. Amid the discussions on the R-1 model from DeepSeek, he asserted that while the latter’s algorithms might find less powerful chips sufficient, the current and future evolution of algorithms like DeepSeek’s would actually require even more compute power.

The AI sector had a slight tremor around DeepSeek’s inauguration in January, especially when the company stated to have built its AI platform on H20 chips that were far weaker than Nvidia’s best offerings. Surely, this thought would drown Nvidia in the minds of many as low-end chips hypothetically might replace an advanced state of hardware from the high-end Nvidia product range.
However, Huang was quick to dismiss this by explaining that smarter reasoning models like DeepSeek will require exponentially more power to run effectively. “The smarter the answer, the more power you need,” arguing that the next generation of AI systems would be even more expensive regarding computational resources.
Inference and a Great Processing Unit signifying Things- Nvidia stock
It’s intensive computational power that turns AI training to infinity, while inference – the process of running applications on AI- still perpetuates demand for Nvidia’s chips. Huang restated that DeepSeek’s model and other platforms similar to it further amplified the need for the heavy lifting in hardware to sustain these complex operations.
On the issue of increased importance of application-specific integrated circuits, such as the chips intended to do special applications like Google’s Tensor Processing Unit, which is used for training AI models, Huang said ASICs were becoming popular. ASICs promise bespoke performance for a particular task. However, Huang remarked that Nvidia chips outperformed those. Moreover, Huang said that Nvidia chips had rich software ecosystems, thereby making them suitable for expanded use cases.
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For one thing, Huang said, a chip might design an ASIC, but that does not mean that it would ultimately make the cut. Other conditions for businesses to consider in deploying a new chip into the AI infrastructure are power and size.
The Future of Nvidia stock Beyond Cloud Service Providers
Huang also expressed concern about how Nvidia depended on CSPs for 50% of its data center revenues. Increasingly, if CSPs move into chip customization, that means less sales for Nvidia from this segment. So, Huang has clarity on how the company is performing.
According to Huang, “We have really only scratched the surface of consumer AI, search, and some parts of consumer generative AI.” He sees many potentials still to be tapped such as agentic AI in enterprise applications, physical AI in robotics, and sovereign AI. These needs are still quite at their beginnings but still pretty exciting for future opportunities.
To Finish With New Horizons Innovations
Keeping the event on the calendar, Nvidia stock is gearing up for its GTC event that takes place on 18 March. Analysts expect the company to also unveil the Blackwell Ultra chip series as well as inform industry members about the next generation of its Vera Rubin processor, strengthening the company’s lead in AI space.
Therefore, while the concerns regarding cheaper AI chips and custom ASICs are relevant, his words during the earnings call provide much reassurance of Nvidia stock still strong hold on the emerging AI landscape. And where models will keep increasing in complexity and demands for inference increasing, Nvidia’s ever-powerful, flexible chips ensure that it will lead. According to Huang, the future for AI will be rich with opportunities beyond the company’s current partnerships with major cloud providers.
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