One of the biggest stories from last week underscores just how critical AI has become—not just for Silicon Valley, but for America’s national security.

This may lead to greater sales of Nvidia's latest GPUs as they can maximize inferencing performance. The company's new Blackwell architecture will give test-time scaling -- a technique that allows a model to think over a problem -- on models like DeepSeek R1 "a giant boost," Nvidia says.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

Shares of Nvidia (NASDAQ: NVDA) gained ground on Wednesday, climbing as much as 5%. As of 12:42 p.m. ET, the stock was still up 4.4%. The catalyst that sent the artificial intelligence (AI) chipmaker higher was news that strong demand for its processors will likely continue.