What’s happening with NVIDIA stock on Wednesday? – NVIDIA (NASDAQ:NVDA)

Nvidia Inc. NVDA Shares fell on Wednesday after Nvidia CEO Jensen Huang admitted to Reuters that Taiwan Semiconductor Manufacturing Co. TSM Helped resolve design flaws in the latest Blackwell AI chips.

Nvidia discovered the flaw after announcing the chip in March, leading to production delays and impacting hyperscalar customers such as Meta Platforms Inc. metaAlphabet Inc. google google google and microsoft MSFT.

Mr. Huang took full responsibility for the defect that resulted in the low yield.

Also read: Nvidia joins leading tech hyperscalers at HLTH conference, partners with Microsoft to drive AI innovation

Nvidia plans to ship Blackwell chips in the fourth quarter, originally targeted for the second quarter.

In last week’s report, Amazon.Com Inc. AMZN Additionally, Amazon Web Services’ data center plans have been delayed due to manufacturing issues with Nvidia’s Blackwell chips, which won’t be available until 2025.

Amazon has entered into a five-year partnership with AI and data startup Databricks to bring more affordable AI development tools to businesses. The collaboration leverages Amazon’s Trainium AI chips, a low-cost alternative to Nvidia GPUs.

Meanwhile, Nvidia continued to expand its geographic footprint, co-developing custom AI chips with India and also making an AI investment in Thailand.

Despite reports indicating delays in Blackwell’s chip production, analysts remain optimistic about Nvidia’s prospects.

I/O Fund’s Beth Kindig predicts the Blackwell chip will be critical to helping Nvidia reach a $10 trillion valuation by 2025. KeyBanc’s John Vinh predicts the chip will generate more than $7 billion in revenue in the fourth quarter.

CNBC’s Jim Cramer and Wedbush’s Dan Ives remained optimistic about the outlook for chip designers.

Nvidia stock has risen 224% in the past 12 months. Investors can gain exposure to stocks through SPDR S&P 500 spy and iShares Core S&P 500 ETF IVV.

Price Action: At last check on Wednesday, NVDA stock was down 2.69% to $139.82.

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