But Nvidia was already preparing to adapt and stay at the forefront of the AI race despite the shift away from creating models and toward operating them, a process known in the in

Stocks slid Thursday, weighed down by chip giant Nvidia (NVDA) in the wake of Wednesday's earnings report, leading semiconductor and other AI stocks lower. Nvidia shares finished Thursday off more than 8%,

While Nvidia delivered a surge in quarterly revenue, it said first-quarter margin would tighten as it ramps production of its new flagship AI chips.

Nvidia on Wednesday reported a surge in fourth-quarter profit and sales as demand for its specialized Blackwell chips that power artificial intelligence systems continued to grow.

Nvidia, the chip giant at the heart of the artificial intelligence (AI) boom, said its business remained strong, despite fears of a bubble stirred by the emergence of Chinese AI firm DeepSeek 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.