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Nvidia (NVDA) stock rose nearly 4% on Wednesday ahead of the release of the AI chip giant’s hotly anticipated fourth-quarter earnings report after the closing bell. Nvidia holds the record for both the largest one-day increase and decrease in market value,

(Reuters) - Nvidia's quarterly outlook on Wednesday suggested demand from Microsoft, Amazon and other heavyweight tech companies racing to build out AI infrastructure remains robust following last month's launch of Chinese startup DeepSeek's low-cost model that raised fears of overspending.

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.

Nvidia said sales, driven by the chips that power artificial intelligence, rose 78% to $39.3 billion in its latest quarter. Net income rose 80% to $22 billion. Both figures came in ahead of Wall Street’s expectations.