NVIDIA's Blackwell AI Chip Issues

Investing.com — NVIDIA's (NASDAQ:NVDA) new Blackwell AI chip is reportedly experiencing overheating problems when connected to customized server racks, as stated by The Information on Sunday afternoon. The company is collaborating with suppliers to redesign the racks to address these heating concerns, causing anxiety among customers who worry about potential delays.

The AI chip giant had previously delayed the Blackwell release by a quarter due to design flaws that have since been addressed.

The new server racks feature a combination of 72 Blackwell chips, forming a powerful AI system. Significant customers, including Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), and Elon Musk’s xAI, are eagerly anticipating the arrival of the Blackwell server racks.

Although NVIDIA typically modifies server designs prior to launch, the adjustments for the Blackwell racks are occurring later in the process. Nevertheless, NVIDIA may still manage to deliver the racks to customers on schedule, and there have been no notifications regarding any delays.

An NVIDIA spokesperson declined to comment to The Information on the current status of the Blackwell rack designs.

All eyes are on NVIDIA in anticipation of earnings this Wednesday, November 20th, with the company's stock up 187% year-to-date.