Yesterday, Nvidia reported earnings for Q4 2025, reassuring investors that its future looks as bright as ever.
The artificial intelligence (AI) leader didn’t post earnings for the quarter until weeks after its Magnificent 7 peers. Over the past month, investors have waited anxiously to learn how much certain market trends have impacted the company and hear its predictions for the near future.
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Despite ongoing trading volatility, Nvidia exceeded Wall Street estimates on revenue and earnings per share, demonstrating that its growth has been mostly stable. While statistics indicate that Nvidia’s growth has slowed, such as forecasts for year-to-year growth potential, CEO Jensen Huang doesn’t seem worried.
During the call, Huang addressed something that many experts have speculated may threaten Nvidia, making it clear that he believes the company can continue to dominate the booming AI market.
Nvidia CEO Jensen Huang recently addressed shareholders and analysts on the Q4 earnings call, laying out some key insights.
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Jensen Huang shares his take on one of the year’s hottest AI names
Many listeners who tuned into the recent Nvidia earnings call likely did so with a primary objective: to learn more about the company that sent NVDA into a nosedive last month.
When DeepSeek, a little-known Chinese startup launched its newest large language model (LLM) last month, the AI market plunged into chaos. News that the DeepSeek-R1 had been trained for only $5.6 million and trained on older AI chips caused investors to question almost everything they thought they knew about the future of AI.
Related: Nvidia surprises with earnings, guidance
NVDA stock plunged as DeepSeek’s new product triggered a selloff, impacting chip stocks such as Advanced Micro Devices (AMD) , Broadcom (AVGO) and Micron Technology (MU) . Experts raised concerns that it could end Nvidia’s dominance, but weeks later, the momentum has subsided.
In the recent Nvidia earnings call, Huang and CFO Collette Kress addressed DeepSeek and provided context on how he sees the company’s future.
To put it simply, Nvidia’s leaders aren’t worried about the startup posing a threat to them. On the contrary, these reasoning models can benefit the company, as they require more computational resources.
“Our inference demand is accelerating, driven by test time scaling and new reasoning models like OpenAI’s o3, DeepSeek-R1, and Grok 3,” Kress states. “Long-thinking reasoning AI can require 100x more compute per task compared to one-shot inferences.”
Later in the call, Huang noted the success of Nvidia’s recent Blackwell, stating that “The demand for Blackwell is extraordinary. AI is evolving beyond perception and generative AI into reasoning.”
Huang later noted that these reasoning models have the ability to apply inference time scaling, a phase in which the model tries to “think” longer and explore more outcomes. Experts have described this as the next frontier of AI performance, poised to bridge the gap between “raw computational power and intelligent problem-solving.”
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As Huang also noted, further reasoning models will be able to consume even more computational resources. He praised DeepSeek for open-sourcing its AI reasoning model, describing it as “world class.”
“Nearly every AI developer is applying R1 or chain of thought and reinforcement learning techniques like R1 to scale their model’s performance,” Huang states, highlighting three scaling laws that he sees as driving the demand for AI computing.
Experts are optimistic that Nvidia is positioned to keep growing
While NVDA stock has dipped today, Wall Street sentiment toward the company remains highly bullish. As TheStreet’s Martin Baccardax reports, multiple analysts have expressed positive views following the Nvidia earnings report, highlighting the rising chip demand as a reassuring factor.
Related: Billionaire hedge fund manager loves this AI stock, and it isn’t Nvidia
Thornburg Investment Management portfolio manager Sean Sun summarized the report’s key takeaways, stating, “The recent setback in Nvidia’s stock from DeepSeek and the narrative that AI demand would decline proved unfounded as customers continue to race to scale AI infrastructure, largely with Nvidia chips.”
Earlier this week, Huang noted that he believed the market had overreacted to DeepSeek’s model and that he felt some experts were misunderstanding the fact that such models would require more computing, thereby benefiting companies like Nvidia.
On the earnings call, Huang believes the market is still only at the beginning of the reasoning AI and inference time scaling era. For that reason, he expects to see Nvidia’s growth continue into 2025.
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