NVIDIA of the S&P 500 Index
NVIDIA and other companies that benefit from the AI boom are the main reasons why the S&P 500 S&P 500 has climbed in the record lately, with the latest future last week.
The effect of tariffs
Despite concerns about the stubborn high inflation and the pain the U.S. economy has brought to the U.S. economy by President Donald Trump’s tariffs and other policies, their profit explosion has helped boost the market. But the tariffs remain “unknown” until Envidia can better understand what the Trump administration’s plan is, Cres said. “We are waiting,” she said, and the company will comply with any export control or tariff rules.
The impact of DeepSeek on Nvidia
Revenue in the fourth quarter was the company’s first report since Chinese company DeepSeek boasted that it had developed a large language model that could compete with Chatgpt and other U.S. competitors, but it was more cost-effective to use NVIDIA chips to train data on the system.
DeepSeek’s madness caused $595 billion in Nvidia’s wealth and briefly disappeared. However, the company praised DeepSeek’s work as “an outstanding AI advancement” that leverages “widely available models and calculations” that fully comply with export controls.
“DeepSeek R1 has sparked global enthusiasm,” Huang said on Wednesday’s earnings call. “It’s an excellent innovation, but more importantly, it has opened sourced a world-class inference AI model. Almost every AI developer applies the idea and enhanced learning technology of R1, or R1 (such as R1) to extend the performance of their models.”
Next wave of AI: coming soon
Huang said in his speech from investors that the “next wave” of AI comes with “the agency AI of enterprises, the physical AI of robots and sovereign AI, as different regions have built AI for their own ecosystems.”
“We are the core of this development,” Huang said.
NVIDIA figures, Investor responses
Wall Street is once again fixed in revenue reports from NVIDIA, a leading player in the AI fanaticism. The chipmaker reported earnings exceeded analyst forecasts in the bell on Wednesday, with stocks up 2% in after-hours trading, perhaps indicating that Wall Street quietly hopes for better results.
This is NVIDIA’s first earnings report, as China’s upstart DeepSeek disrupted the AI industry, saying it has developed a large language model that can compete with big American competitors without the need to use the most expensive chips. After the news, NVIDIA’s market value fell by nearly $600 billion.
