The chip maker’s stock plunged after reports about the Chinese artificial-intelligence model raised fears about spending on AI infrastructure.

Nvidia, the chip giant at the heart of the artificial intelligence (AI) boom, said business remained strong, despite fears of a bubble stirred by the launch of Chinese AI firm DeepSeek's launch on the scene last month.

Nvidia's forecast also helps allay doubts around a slowdown in spending on its hardware that emerged last month. The company reported quarterly results on Wednesday.

The report raised fears about the sustainability of AI infrastructure growth. That could mean less demand for Nvidia’s chips. TD Cowen’s Michael Elias said his team’s finding points to “a potential oversupply position” for Microsoft. Shares of Nvidia fell 4% on Friday.

Nvidia (NVDA) is expected to release its fiscal fourth quarter earnings results at the end of the trading day on Wednesday.