Feb 24 (Reuters) – Nvidia’s earnings report is anticipated to shed light on the demand for its high-cost AI chips. Investors are questioning the necessity of Nvidia’s chips following the emergence of cost-effective AI models from China’s DeepSeek. This skepticism follows a significant market value drop for Nvidia after DeepSeek’s rise. Spear Invest’s chief investment officer, Ivana Delevska, noted investor concerns about the impact on demand. Nvidia’s revenue growth is expected to slow, with a projected 72% increase to $38.05 billion in Q4, per LSEG data. The company’s adjusted gross margin may decrease due to the costly launch of its Blackwell chips, which marks a shift to selling complete AI computing systems. Gabelli Funds’ John Belton highlighted the positive demand outlook despite challenges with the Blackwell launch. — news from Reuters
