Nvidia stock (NVDA) fell as much as 3% early Monday following a new report from The Information highlighting overheating issues with the company’s latest Blackwell artificial intelligence servers.
The news also comes ahead of the AI chip maker’s earnings report, which is expected to be released after the market closes on Wednesday.
This is not the first time problems have been reported with the company’s Blackwell products. In August, The Information reported that major AI chip makers were addressing design flaws related to individual Blackwell chips themselves.
Nvidia acknowledged concerns that Blackwell’s production would be delayed in its late August earnings call, saying chip production would increase in the December quarter rather than its previously stated goal of increasing during the September quarter. said. The company has not publicly acknowledged any design flaws or overheating issues.
Nvidia told Yahoo Finance that “engineering iterations are normal and expected” for the latest AI servers. Nvidia’s so-called GB200 NVL72 server system uses 72 Blackwell chips and 36 modern Grace CPUs. Nvidia said these servers are “the most advanced computers ever created.”
CEO Jensen Huang said the Blackwell chips are expected to bring in “billions of dollars” in revenue in the fourth quarter. According to The Information, customers looking to use Blackwell server systems include Meta (META), Microsoft (MSFT), and Elon Musk’s xAI.
Despite the reported issues, Dell Technologies CEO Michael Dell said in an He said there was.
As Yahoo Finance’s Dan Howley pointed out last week, even with the company’s excellent report and outlook on Wednesday, the company’s stock could fall. Nvidia, for example, beat expectations across the board in its most recent quarter, but its stock still fell 6% immediately after its earnings release.
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