Worries over a potential delay of Nvidia’s latest AI chips appear overblown as demand continues to rise and major clients (cloud/hyperscalers) continue to grow their capex outlooks, Reuters reports, citing Bernstein analyst Stacy Rasgon, who said, “Nvidia’s competitive window is…
— Dan Nystedt (@dnystedt) August 6, 2024
Nvidia’s upcoming AI chips, part of the Blackwell series, will face delays of at least three months due to design flaws, according to sources familiar with the matter. These delays could impact Nvidia’s customers, as shipments are now not expected until the first quarter of 2025. The delay was communicated to Microsoft by Nvidia earlier this week, as confirmed by an unidentified Microsoft employee and another source involved.
Foxconn plans to ship Nvidia GB200 AI servers on schedule in the 4th quarter and is the only contract server maker able to obtain enough supply, media report, citing unnamed supply chain sources and adding that as soon as rumors of Nvidia chip supply issues cropped up, customers…
— Dan Nystedt (@dnystedt) August 6, 2024
Nvidia has not publicly commented on these delays but assured that production was on track to ramp up later this year. Representatives from major tech firms such as Microsoft, Google, Amazon Web Services, and Meta declined to comment on the delays. A spokesperson from TSMC, one of Nvidia’s manufacturing partners, also did not respond to a request for comment.
Nvidia told Barron’s that its story hasn’t changed.
“As we’ve stated before, Hopper demand is very strong,” “Broad Blackwell sampling has started, and production is on track to ramp in 2H. Beyond that, we don’t comment on rumors.” $NVDA https://t.co/wDitjDKb6y
— Scott Wainner (@scottwww) August 3, 2024
This setback comes at a critical time for Nvidia, heavily invested in advancing its AI technology to meet growing demand. The delay could affect the deployment timelines for cutting-edge AI applications across various industries.
Nvidia delays Blackwell chip rollout
Despite the potential for production hiccups, analysts are optimistic.
In semi design and manufacturing, perfection is rarely sustainable.
The occasional miss by a company performing as well as @nvidia will be overlooked.
But, this will apparent miss on GB will bring attention and questions and likely will further accelerate existing efforts by… pic.twitter.com/3LkrhkLUBs
— Daniel Newman (@danielnewmanUV) August 3, 2024
“Short-term delays are unlikely to have a lasting impact on Nvidia’s market presence or its long-term growth trajectory,” stated Shilpi Majumdar, an industry expert. Nvidia’s demand for AI chips is likely to see minimal disruption despite a potential production delay, according to analysts.
The concerns arose following speculations about possible delays in the production of Nvidia’s cutting-edge AI chips. However, industry analysts have stated that this is unlikely to affect the company’s momentum or market demand. “Even with some setbacks in production schedules, the underlying demand for Nvidia’s AI solutions remains strong,” said Juby Babu, an analyst based in Mexico City.
Nvidia has been a leading force in the AI chip industry, driven by robust demand from various sectors including data centers, automotive, and robotics. The company’s stock has seen notable growth over the past few years, reflecting investor confidence in its technological prowess and market strategy. As Nvidia navigates these production forecasts, the company remains focused on meeting the high expectations of its diverse customer base and sustaining its leadership in the AI chip market.
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