The chip maker’s stock plunged after reports about the Chinese artificial-intelligence model raised fears about spending on AI infrastructure.

Nvidia, the chip giant at the heart of the artificial intelligence (AI) boom, said its business remained strong, despite fears of a bubble stirred by the emergence of Chinese AI firm DeepSeek last month.

Nvidia investors will be watching for any clues on how the DeepSeek surprise is reshaping the AI chip giant's trajectory when it reports earnings Wednesday afternoon. Why it matters: China-based DeepSeek's new AI model turned heads earlier this year with its stunning efficiency,

Nvidia faces more competition in inference compute.

After a 78 per cent jump in revenue last quarter, Nvidia sees continued growth despite concerns that DeepSeek’s compute-efficient models could dent demand.

Nvidia CEO Jensen Huang is more bullish about Nvidia's sales than ever, despite a market panic last month induced by China's DeepSeek.