Nvidia stock sinks on reports of Blackwell AI server issues ahead of earnings
Nvidia (NVDA) stock sank as much as 3% early Monday following a new report from The Information, which highlighted overheating issues with its latest Blackwell AI servers.
The news also comes ahead of the AI chipmaker’s earnings report, which is slated for release after the market close on Wednesday.
The news is not the first time issues have been reported with the company’s Blackwell products. In August, The Information reported that the leading AI chipmaker was dealing with design flaws related to the individual Blackwell chips themselves.
Nvidia confirmed fears that Blackwell production would be delayed in its earnings report in late August, stating that production of the chips would ramp up in the December quarter, rather than its previously-stated goal to ramp during the September period. The company has not publicly confirmed any design flaws or overheating issues.
Nvidia told Yahoo Finance said of its latest AI servers: “The engineering iterations are normal and expected.” Nvidia’s so-called GB200 NVL72 server system uses 72 Blackwell chips and 36 of its latest Grace CPUs. Nvidia said the servers are “the most advanced computers ever created.”
Those Blackwell chips are set to bring in “several billion dollars” in sales in the fourth quarter, according to CEO Jensen Huang. Customers looking to use Blackwell server system include Meta (META), Microsoft (MSFT), and Elon Musk’s xAI, according to The Information.
Despite reported issues, Dell Technologies CEO Michael Dell noted in a post on X Monday, following the Information’s report, that Dell has received an unspecified number of Nvidia’s Blackwell servers, which are used within its own AI hardware products.
As Yahoo Finance’s Dan Howley noted last week, even a stellar report and outlook from the company Wednesday could send its stock down. Nvidia topped expectations across the board in its most recent quarter, for example, but shares still fell 6% immediately after it announced its results.
