Nvidia, the leading AI chipmaker, continues to dominate the artificial intelligence (AI) sector, reporting robust sales despite recent concerns over competition from Chinese AI firm DeepSeek.

In the three months ending January 27, Nvidia’s revenue soared to $39 billion (£30.7 billion)—a 74% year-over-year increase—driven by soaring demand for its high-performance AI chips. As major tech giants like Microsoft, Meta, and Google ramp up AI investments, Nvidia remains at the core of this growth.

DeepSeek Sparks Market Jitters, But AI Demand Remains Strong

Earlier this month, Nvidia’s stock experienced a sharp sell-off following DeepSeek’s announcement that it had trained its AI chatbot using less advanced, cost-effective chips. However, investor confidence quickly rebounded as major firms, including Meta, reaffirmed their commitment to Nvidia’s cutting-edge AI technology.

CEO Jensen Huang dismissed concerns over a market shift, emphasizing that the future of software development depends on machine learning architectures, which require advanced AI chips rather than traditional programming methods.

Nvidia’s AI Leadership and Market Expansion

Nvidia continues to dominate the AI hardware industry, making it a cornerstone of AI-driven investments across the tech sector. Over the past two years, its stock has surged by more than 400%, propelling its market valuation beyond $3 trillion.

To meet escalating demand, the company is rapidly scaling production of its latest Blackwell chips, a key driver behind its soaring revenue. CFO Collette Kress highlighted that Nvidia’s AI data center business remains strongest in the U.S., with growing traction in Europe, particularly through investments by France and the European Union.

Meanwhile, demand in China remains subdued due to U.S. trade restrictions, limiting Nvidia’s ability to export certain chips to the region. Kress indicated that shipments to China are expected to remain stable at current levels.

Nvidia’s Future in AI Innovation

As AI adoption accelerates across industries, Nvidia is well-positioned to maintain its dominance. With expanding global demand, cutting-edge AI chip technology, and unwavering investment from major tech firms, the company remains at the heart of the AI revolution.