Nvidia reports revenue today. This means more questions about AI being exaggerated.
The company’s chips are so important to AI development that quarterly reports have become a unionized event for the technology. And three months after Nvidia last checked in, one company has shocked Deepseek in the AI industry.
Business Insider’s Emma Cosgrove and Hasan Chowdhury outline what Nvidia expects when reporting the bell.
Deepseek could enter the scene in late January and produce high-performance models with less powerful hardware than its US competitors. And when you’re in a business selling AI chips like Nvidia, you might consider it not great news.
At least that was the market’s first reaction. Nvidia lost its market capitalization of $600 billion in one day.
Stocks have finally stabilized – and some cloud companies said Deepseek’s AI model ultimately led to an increase in demand for Nvidia chips, but that’s still tough until 2025 for the tech giant It was the start. NVIDIA shares have fallen more than 8% this year, compared to the S&P 500, which rose 1.48%.
Nvidia CEO Jensen Huang spoke to Deepseek’s stock sale (I never speculate on this, I think investors are wrong). Wednesday’s revenues are another opportunity for Nvidia to calm the market nerves and address ongoing doubts about AI.
Jensen Huang was announced at an Nvidia event held in San Jose in March. Justin Sullivan/Getty Images
If there’s someone suitable to handle critics, it’s the second largest company in the world.
Many times, Nvidia answered the bell. As they headed towards their final revenue, there was concern about the AI model that hits the barriers of performance. Fan reaction? Nvidia’s demand for new chips has been “incredible.”
When you think about it, the biggest threat to Nvidia may be the incredible expectations that Wall Street analysts have built up on it. Nvidia broke its second-quarter estimates in August, but its third-quarter revenue guidance was slightly below its most ambitious forecasts, with stocks falling. This is life at the pinnacle of the AI kingdom.
However, Wall Street is not under pressure. Most analysts hope Nvidia will once again beat its revenue estimates, with some expecting it to raise first-quarter guidance on revenue, writes Bi’s Matthew Fox.
The Insider Today Team: Dan Defrancesco, Associate Editor and Anchor of New York. Grace Lett, Chicago editor. Ella Hopkins, associate editor of London. Hallam Brock, senior editor in London. Amanda Yen, Associate Editor in New York; Chicago’s Elizabeth Cassolo, Fellow.
