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Nvidia's chip demand faces scrutiny
Mint New Delhi
|February 25, 2025
Demand for Nvidia's pricey artificial intelligence (AI) chips will be in focus when the company reports results on Wednesday as investors doubt the hefty spending on the technology after low-cost AI models from China's DeepSeek rattled the industry.
The world's second-most valuable company has been the top beneficiary of an AI-driven spending spree by big technology companies over the past two years.
But claims that DeepSeek's AI models rival its Western counterparts at a fraction of the cost has led some investors to ask if Nvidia's cutting-edge chips are essential for gaining an edge in the AI race.
DeepSeek's sudden rise in January resulted in Nvidia losing $593 billion in market value, the largest one-day loss for any US company. Its shares were one of the best performers in 2023 and 2024.
This story is from the February 25, 2025 edition of Mint New Delhi.
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