The demand for the expensive artificial intelligence chips of NVIDIA will be the focus of attention when the company presents its results on Wednesday, since investors doubt the high expense in technology after the low -cost models of Deepseek of China They shake the industry.
The second most valuable company in the world has been the main beneficiary of a wave of expenses promoted by artificial intelligence by large technology companies in the last two years.
But the statements that Depseek’s models rival their western counterparts to a cost fraction has led some investors to wonder if Nvidia’s latest chips are essential to obtain an advantage in the AI race.
The sudden increase in Deepseek in January caused NVIDIA to lose 593,000 million dollars in market value, the largest loss in one day for any US company. His shares were one of the best performance in 2023 and 2024. ”Investors are very concerned about Depseek and the impact it will have on demand,” said Ivana Delevska, Spear Invest investment director, who has NVIDIA shares in a Background quoted in the bag actively managed.
“Therefore, if they (Nvidia) can demonstrate that they are still able to ‘overcome and increase’, it would be quite positive for actions.”
According to LSE data, NVIDIA is expected to report an increase of 72% in its income up to 38,050 million dollars in the fourth quarter, its slower growth in seven quarters. It is likely to forecast a 60% increase in income for the first quarter that ends in April. In contrast, the company’s income has experienced five consecutive three -digit growth quarters until the quarter that ended in October.
So far, the demand for artificial intelligence chips of Nvidia has not decreased. Great clients such as Microsoft and Meta have said they plan to move forward with their strong expense in data centers.
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Nvidia chips
“Capex plans communicated by Meta, Microsoft, Google and Amazon … paint a very positive panorama of the short -term demand context for NVIDIA,” said John Belton, Gabelli Funds portfolio manager, who has Nvidia actions.
Meanwhile, the shipments of the powerful Nvidia Blackwell chips are expected to have accelerated in the fourth quarter, promoting their income but reducing their margin due to the cost of developing a new and complex chip. Analysts hope that the adjusted gross margin of NVIDIA will be reduced by more than three percentage points to 73.5% in the fourth quarter.
With the Blackwell series, Nvidia is going from selling individual chips to complete computer computer systems such as GB200 NVL72, which includes GPU, CPU and network equipment. This has further complicated an increase in expensive production and that requires a lot of time. Its manufacturer hired, Taiwanese TSMC, hastened to expand the ability for advanced packaging, a complex process that joins the chips and is the main bottleneck in the supply chains of semiconductors of AI.
The launch of Blackwell was also hindered by design failures and low yields of the chips, although since then Nvidia has solved the problems.
In November, he said Blackwell would exceed initial income projections of several billions of dollars in the fourth quarter. “Blackwell has been a complicated launching set,” said Belton de Gabelli. “Taking into account the magnitude of the higher performance to which investors have become accustomed, Nvidia delivery could be less this time, simply due to some of some of some of some of These dynamics with the launch of Blackwell. ”
With Reuters information.
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