Nvidia investors will be watching for any clues on how the DeepSeek surprise is reshaping the AI chip giant's trajectory when it reports earnings Wednesday afternoon. Why it matters: China-based DeepSeek's new AI model turned heads earlier this year with its stunning efficiency,

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.

Demand for Nvidia's pricey artificial intelligence 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.