Nvidia, a chip giant at the heart of the AI (AI) boom, said the business remains strong despite the bubble terror stoking by the launch of Chinese AI company Deepseek last month.
The company’s chip sales reached more than $390 billion (£30.7 billion) in the three months ended January 27th, up 74% year-on-year.
Nvidia has seen a surge in demand as large tech companies rely on companies to chips that can process the large amount of data used to train AI models.
However, Deepseek said it trained the chatbots using less advanced and cheaper chips.
The launch prompted a rapid sale in Nvidia shares earlier this month, giving it a hit across the market.
Investors have settled as large companies such as Facebook owner Meta said they hope to continue their current AI investment strategy.
Nvidia boss Jensen Huang said he was not worried about sudden changes in demand, saying that the future software will be created by machine learning, requiring chips with different architectures than the past “hand coding.”
“We know that software has fundamentally changed,” he said, adding that it’s still “early” for AI to spread.
Nvidia currently dominates the market with advanced chips, and is at the heart of the boom in AI investments in companies such as Microsoft.
Its stock has skyrocketed over 400% over the past two years, giving the company a market value of over $30.
Nvidia said it is focused on quickly building production for the latest chips known as Blackwell.
The company’s financial head, Colette Cress, said its AI data center business is the strongest in the US, but the company also saw demand rise in other parts of the world, pointing to investments from France and the European Union.
She said demand in China, where US trade control blocked exports of certain chips, remains low, and the company expects freight to be largely maintained at current levels.
