A delay of three or more months in the launch of Nvidia’s new artificial intelligence chips could impact customers such as Alphabet’s Google, Meta Platforms, and Microsoft, Reuters reported.
The delay, due to design flaws in the upcoming AI chips, was first reported by the tech-focused publication The Information on August 2.
Customers Affected
The setback could affect customers such as Meta Platforms, Alphabet’s Google, and Microsoft. The tech giants have collectively ordered tens of billions of dollars’ worth of chips, The Information report added, citing people who help produce chip and server hardware for Nvidia.
Nvidia unveiled its Blackwell AI chips in March, following its flagship Grace Hopper AI Superchip, which was designed to speed generative AI applications, Reuters reported.
“As we’ve stated before, Hopper demand is very strong, broad Blackwell sampling has started, and production is on track to ramp in the second half,” an Nvidia spokesperson told Reuters via email.
Meanwhile, Microsoft said it “had nothing to add,” and Google and Meta did not respond to queries, Reuters added.
Production Delays
Nvidia informed Microsoft and another major cloud service provider of the likely delay this week, The Information report added, citing a Microsoft employee and another person with knowledge of the matter.
The delays mean big shipments aren’t expected until the first quarter of 2025, The Information added.
Nvidia Adds Record $329 Billion in Market Value
On August 1, Nvidia share prices surged nearly 13 percent, adding around $330 billion in stock market value to the chip maker, in a record one-day gain for any company on Wall Street. Nvidia’s stock price jumped 12.81 percent to $117.02 per share, making it worth $2.88 trillion — and the third most valuable company on Wall Street, behind Apple and Microsoft.
This market cap surge shattered Wall Street’s previous record, which was also set by Nvidia on February 22 when it gained $277 billion, Reuters reported. Nvidia’s highest ever closing stock market value was $3.34 trillion on June 18, according to LSEG.
The rally in Nvidia shares was due to expectations of high demand for its processors after Microsoft late on Tuesday reported a massive increase in artificial intelligence expenditures.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
