Nvidia's Blackwell demand remains unfazed by DeepSeek situation: Wedbush
Demand for Nvidia's (NASDAQ:NVDA) Blackwell GPUs remains much stronger than supply despite the recent DeepSeek noise, according to Wedbush analysts.
"We believe demand is far outstripping supply with Blackwell in the field and after speaking with many enterprise AI customers, we have seen NOT ONE AI enterprise deployment slow down or change due to the DeepSeek situation," said Wedbush analysts, led by Daniel Ives, in a note following a quarterly trip to Asia and a supply chain check. "No customer wants to 'lose their place in line' as it is described to us for Nvidia's next gen chips."
Wedbush estimates that about 10% to 15% of IT budgets will go to artificial intelligence in 2025. Capital expenditures from Magnificent Seven companies will increase about $100B to $325B in 2025 as well.
"We are seeing many IT departments focused on foundational hyperscale deployments for AI around Microsoft (MSFT), Amazon (AMZN), and Google (GOOG)(GOOGL) with a laser focused on the software-driven use cases currently underway," Ives added. "The China trade tensions are a lingering concern to the market, but we do not see this geopolitical poker game with the 202 area code getting in the way of the AI Revolution and DeepSeek if anything has accelerated demand for more companies heading down the AI paths in 2025...not the opposite in our view despite many tech bears coming out of hibernation mode with the DeepSeek soap opera."
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