DeepSeek Shakes NVIDIA's Moat, Jensen Huang: Computing Remains the Future

TradingKey – The DeepSeek model, which has swept the globe with its low computing power cost, once caused NVIDIA's market value to experience the largest drop in the history of the US stock market. NVIDIA’s CEO, Jensen Huang, recently responded for the first time to the impact of DeepSeek on the company.

Huang believes that the drastic market reaction stemmed from investors' misunderstandings.

By dominating the chip market, which is indispensable in the development of AI models, NVIDIA has become one of the best-performing stocks over the past two years.

Citi Group pointed out that the sustainability of NVIDIA's growth mainly depends on four factors: the shift of the traditional computing market to accelerated computing, AI becoming a new computing layer, the demand for AI factories, and AI empowering corporate productivity.

During an interview, Huang pointed out that investors' reaction to the DeepSeek-R1 model was, "Oh my gosh. AI is finished," leading them to believe that AI companies no longer needed powerful computing power. However, Huang stated that this belief is the complete opposite of the reality.

He emphasized that pre-training is still important, but post-training will remain crucial and resource-intensive.

Jensen Huang acknowledged the arrival of DeepSeek and praised it for bringing great vitality to the AI field. He noted that the enthusiasm shown worldwide for the open-source R1 is incredible, and described it as an exciting development.