Source: Investors, TheVerge
Nvidia reportedly is delaying its next-generation artificial intelligence chips by at least three months. Mass shipments may not take place until early 2025. Nvidia stock and many AI plays plunged amidst a global rout.
Nvidia told Microsoft (MSFT) and another critical cloud customer that its Blackwell B200 AI chips will be delayed due to a design flaw found late in the production process. Despite these rumors, other employees from the company still insist that production is on track to ramp up. Nvidia expects the chip output “to ramp in 2H,” according to a statement that Nvidia spokesperson John Rizzo shared with The Verge. “Beyond that, we don’t comment on rumors.”
The B200 chips were set to replace the highly popular H100 chips, which have sent Nvidia sales, profits, and stock soaring. The AI leader is now holding new test runs with Taiwan Semiconductor Manufacturing Co. (TSM), which makes Nvidia chips.
A delay could affect Nvidia’s revenue and its stock later this year. Due to these rumors early Monday, Citigroup cut fiscal 2025 revenue estimates due to the Blackwell delay and removed Nvidia stock from its catalyst watch. Nvidia’s stock dived 6.5% but was well off lows. It could also impact TSMC and rival Advanced Micro Devices (AMD), which was set to fall behind Nvidia with the new Blackwell chips. Major customers such as Microsoft, Google-parent Alphabet (GOOGL), and Meta Platforms (META) have ordered tens of billions of dollars worth of next-generation chips for AI ambitions.
