DeepSeek shook the market, hitting Nvidia's shares hard and more recently leading to scrutiny of major OpenAI investor Microsoft's AI spending plans. Nvidia earnings on Wednesday after the close will be a key read on how the AI infrastructure leader sees the market for AI chips and data centers developing as the cost of large language models comes down.
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As Nvidia gears up for its highly anticipated earnings report, market participants are keenly focused on any insights regarding the shipment progress of its latest server chip, Blackwell. With demand for Nvidia chips skyrocketing in recent years, analysts have had trouble accurately predicting revenue growth. Nvidia investors got a scare in early February after China-based DeepSeek launched a competitive large language model that it claimed was developed with just about $6 million.
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