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 and another key cloud customer that its Blackwell B200 AI chips will be delayed due to a design flaw found late in the production process, The Information reported Saturday, citing a Microsoft employee and other source.
The B200 chips were set to replace the highly popular H100 chips that have sent Nvidia sales, profits and stock soaring.
The AI leader is now holding new test runs with Taiwan Semiconductor Manufacturing Co., which makes Nvidia chips.
An Nvidia spokesperson wouldn't comment on reports of a delay, telling The Information in an emailed statement that "production is on track to ramp" later this year.
A delay could affect Nvidia revenue later this year, along with NVDA stock. It could also impact TSMC as well as rival Advanced Micro Devices, which was set to fall behind Nvidia with the new Blackwell chips. Major customers such as Microsoft, Google-parent Alphabet, Meta Platforms have ordered tens of billions of dollars worth of the next-generation chips for the AI ambitions.
Early Monday, Citigroup cut fiscal 2025 revenue estimates due to the Blackwell delay and removed Nvidia stock from its catalyst watch.
Futures Dive Amid Global Rout; Nvidia, Apple Plunge
Nvidia Stock
NVDA stock dived 6.5% early Monday, but well off lows. Shares tumbled 5.1% last week to 107.27, now decisively below the 50-day and 10-week lines.
Chip and AI plays struggled along with the broader markets last week. There also were multiple reports late in the week that the Justice Department is probing Nvidia for its AI dominance.
AMD stock reversed higher for a fractional gain. Shares fell 5.35% last week to a 2024 low. Shares initially rose on strong AMD earnings, but reversed lower.
TSM stock sold off at the open, paring losses to 4.5%. Shares retreated 7.5% last week, now far below their 50-day and 10-week lines. Taiwan Semiconductor will report July sales on Friday.
Microsoft, Meta and Google were modest losers Monday.
Microsoft tumbled 3.95% last week amid weaker-than-expected Azure cloud-computing growth, though shares did find support at their 200-day line.
Meta stock popped 4.8% to 488.14 for the week, but closed below its 50-day line after initially spiking Thursday on earnings
Google dipped 0.2% last week after tumbling in the prior week on earnings.
Microsoft, Meta and Google also signal continued strong AI-led capital spending, with much of that expected to go for Nvidia chips.
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