Preheat the oven to 350℉. Lightly grease a bundt cake pan.
In a large bowl, use an electric mixer to mix chocolate cake mix, pudding, eggs, water and oil until smooth. Use a rubber spatula to fold in sour cream and chips. Stir until the sour cream is incorporated.
Pour the batter into the prepared bundt pan and bake for 50 to 60 minutes, or until a toothpick inserted in the center of the cake comes out clean.
Cool thoroughly before removing from pan. To remove, invert onto serving dish and tap firmly on pan. If necessary, gently run a plastic knife around the inner circle of the pan.
Sprinkle with powdered sugar just before serving for a nice presentation.