FX168 Financial News (North America) reported that on Monday, nvidia's stock price dropped by 3% at one point. This followed a report from The Information, which pointed out that the newly launched Blackwell ai server has overheating issues. The timing of this news is sensitive, as nvidia is set to release its quarterly earnings report after the market closes on Wednesday.
(Source: Google)
This is not the first time the Blackwell product has faced negative news. In August of this year, The Information reported that nvidia was dealing with issues related to a design defect in a single Blackwell chip.
Subsequently, nvidia confirmed concerns about delays in Blackwell production during its earnings report at the end of August, stating that chip output would increase in the December quarter rather than the previously planned September. However, nvidia did not publicly confirm reports regarding design defects or overheating issues.
In response to this controversy, nvidia stated, "Engineering iterations are a normal and expected part of the process." It is reported that the company's GB200 NVL72 server system is equipped with 72 Blackwell chips and 36 of the latest Grace CPUs, which nvidia calls "the most advanced computer ever."
CEO Jensen Huang also expressed confidence in the Blackwell series, stating that these chips are expected to generate "billions of dollars" in sales in the fourth quarter.
Major clients and market signals are inconsistent.
Despite reports indicating that there are issues, nvidia's client list remains impressive.
It is reported that companies planning to use Blackwell servers include Meta, microsoft, and Elon Musk's xAI. Additionally, dell technologies CEO Michael Dell stated on social platform X on Monday that his company has begun delivering nvidia Blackwell servers within PowerEdge systems, although the specific quantity was not disclosed.
(Source: X)
Analysts point out that even if nvidia's financial report and future outlook on Wednesday perform excellently, its stock price may still face pressure. For example, in the most recent quarter, nvidia's performance exceeded expectations across the board, yet the stock price dropped by 6% after the financial report was released.
Investor concerns are primarily focused on the risk that large technology companies may reduce spending related to ai, which poses a significant challenge for companies reliant on ai chip sales.
This sentiment was already evident last Friday. Applied Materials released a financial report that fell below market expectations, leading to a broad decline in the semiconductor sector.
As a leading global supplier of chip manufacturing technology, Applied Materials' clients include taiwan semiconductor, which produces advanced computing chips for companies like nvidia.
On that day, nvidia's stock price closed down 3.3%, while the PHLX semiconductor index fell 3.4% year-on-year.
Despite recent fluctuations in stock price, nvidia is still up about 186% compared to the same period last year. This performance not only makes it one of the fastest-growing companies by market cap, but also allows it to surpass apple, becoming the most valuable company in the world.
Additionally, nvidia's strong performance has led it to replace intel as a new member of the dow jones industrial average.
As the earnings report is about to be released, the market will focus on whether nvidia can continue to exceed expectations in performance, and whether the Blackwell product will bring significant revenue as scheduled. All of this will be key to the future direction of the stock price.
