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.

A recent stumble, however, came after the Chinese startup DeepSeek unveiled a lower-cost AI model that was seen as a threat to the dominance of U.S. rivals, driving Nvidia down roughly 17% on January 27, equivalent to $593 billion — a record one-day market value loss.

DeepSeek majorly impacted Nvidia last month: its market cap dropped by $600B in one day. The chip giant will respond on this week's investors' call."

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

The semiconductor market is positioned to have another "transformative year" in 2025, believes exchange-traded fund provider VanEck. Industry leaders such as Nvidia (NASDAQ:NVDA), Broadcom (AVGO), TSMC (TSM),