Nvidia has reportedly requested multiple design changes for its next-generation AI chip, “Blackwell,” from suppliers. This report comes from the US technology news outlet, The Information, citing internal sources. Nvidia, which initially introduced Blackwell in March, planned to release it in the second quarter of this year. However, the release was delayed due to defects discovered in the production process. During its earnings announcement in August, Nvidia stated that mass production is now expected in the third quarter of fiscal year 2025 (November 2024 to January 2025).
The design changes were reportedly prompted by overheating issues with Blackwell, especially when connected to custom server racks. While Nvidia maintains that it can still deliver Blackwell to customers by late next year, concerns about further delays persist among customers, particularly because the release has already been postponed once. Nvidia has described these engineering iterations as normal and expected.
Tech companies like Microsoft, Meta, and xAI, which pre-ordered Blackwell, are concerned about potential delays. They are considering increasing their orders of the existing AI chips, the “Hopper” series (H100, H200), as a precaution. According to The Information, this could temporarily boost Nvidia’s profits as the margins on Hopper chips are higher. However, a shift to Hopper might reduce future orders for Blackwell and NV Link servers, potentially affecting long-term revenue forecasts.
The financial investment community is closely watching how this news might impact Nvidia’s stock price. Nvidia recently peaked at $149.7 on the Nasdaq on the 11th and has since been undergoing adjustments.