Nvidia (NVDA) is reportedly delaying its next-generation artificial intelligence chips by at least three months, with mass deliveries potentially not happening until early 2025.
Nvidia said Microsoft (MSFT) and another major cloud customer said their Blackwell B200 AI chips will be delayed due to a design flaw discovered late in the manufacturing process, The Information reported Saturday, citing a Microsoft employee and another source.
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The B200 chips are expected to replace the highly popular H100 chips, which have skyrocketed Nvidia’s revenue, profits and stock price.
The AI ​​leader is now conducting new test runs with Taiwan Semiconductor Manufacturing Co. (TSM), manufacturer of Nvidia chips.
An Nvidia spokesperson declined to comment on the delay, but told The Information that production is “on schedule and will start up” later this year.
A delay could impact Nvidia’s earnings later this year, along with NVDA’s stock. It could also impact TSMC and rival Advanced micro devices (AMD), which would follow Nvidia with the new Blackwell chips. Major customers such as Microsoft, Google parent company Alphabet (GOOGL page), Meta platforms (META) have ordered tens of billions of dollars worth of next-generation chips for their AI ambitions.
What to do after stock nosedive; Nvidia’s next AI chip delayed
Nvidia stock
NVDA shares fell 5.1% last week to 107.27, now well below its 50-day and 10-week lines. Chip and AI games struggled last week, as did the broader markets. There were also multiple reports late in the week that the Justice Department is investigating Nvidia for its AI dominance.
AMD shares fell 5.35% last week to a 2024 low. Shares initially rose on AMD’s strong earnings, but then fell again.
TSM shares fell 7.5% last week, now well below their 50-day and 10-week lines. Taiwan Semiconductor is scheduled to report July sales on Friday.
Microsoft fell 3.95% last week as Azure cloud computing growth came in below expectations. However, shares did find support at the 200-day mark.
Meta shares rose 4.8% to 488.14 for the week but closed below their 50-day line after initially rising on Thursday on earnings.
Google fell 0.2% last week after the company reported a decline in earnings the week before.
Microsoft, Meta and Google also say they will continue to invest heavily in AI, with much of that expected to go to Nvidia chips.
Follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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