BofA Securities analyst Vivek Arya reiterates a Buy rating on Nvidia (NVDA) with a $165 price target, citing robust growth opportunities in gaming and data center markets. Despite challenges like Blackwell delays and regulatory scrutiny, Arya believes Nvidia’s long-term potential in AI and its new Blackwell chip remains strong.
Nvidia’s new Blackwell AI chips, designed to be larger and more powerful than their predecessors, are facing manufacturing challenges, impacting profit margins and production yields. Despite these hurdles, analysts remain optimistic about Nvidia’s future, citing strong demand for its chips in the data center and generative AI markets.
Supermicro, a major NVIDIA partner, has acknowledged a delay in the release of NVIDIA’s upcoming Blackwell AI GPUs, but assured customers that its liquid-cooled Hopper H200 AI GPUs will serve as a viable alternative. Supermicro CEO Charles Liang downplayed the impact of the delay on AI server makers and the market, stating that it’s a common occurrence for new technology to experience slight delays.
NVIDIA has acknowledged production yield issues with its new Blackwell AI GPUs, leading to a delay in the B100 launch. The company will re-spin the Blackwell tile and introduce a revised B200A for enterprise customers, while prioritizing the B200 for hyperscale deployments. These developments underscore the challenges associated with advanced chip design and manufacturing.
This analysis delves into the upcoming Nvidia earnings, focusing on the impact of its Blackwell guidance on the stock market and the broader economic landscape. It also examines money flows, smart money actions, and the outlook for Bitcoin, providing insights for investors navigating current market conditions.
Nvidia, the leading chipmaker and AI powerhouse, is set to release its second-quarter earnings report on Wednesday. While analysts anticipate strong revenue growth driven by robust demand for AI accelerators, concerns linger about potential delays in the Blackwell 200 chip, which could impact profitability.
NVIDIA has successfully run its new Blackwell AI GPUs in real-time within its data centers, dispelling rumors of design issues and confirming its production schedule. The company will reveal more details about the Blackwell architecture at Hot Chips next week, and it will be available to select customers in the fourth quarter of 2024.
NVIDIA is facing challenges with its upcoming Blackwell AI GPUs. Analyst firm KeyBanc reports design flaws in the B100 chip, causing a 3-month delay. NVIDIA has reportedly canceled the B100 and will replace it with the B200A, a lower-cost/performance GPU targeted at enterprise customers. The B200 will be prioritized for hyperscalers, but supply will be limited in Q4 2024 due to production constraints.
NVIDIA’s Blackwell Ultra AI GPU is getting a spec bump with up to 288GB of HBM3E memory and a 50% performance increase. However, the rollout has been hit with delays, and a redesigned B200A version is in the works. The news comes from SemiAnalysis, which has also revealed that Blackwell Ultra will come in both standard CoWoS-L and a new MGX NVL 36 form factor.
NVIDIA’s ambitious Blackwell AI GPUs are facing significant challenges due to design flaws, resulting in delays and a revised roadmap. The B200, originally slated for Q4 2024, will now see limited shipments towards the end of the year, while the redesigned B200A is expected in the second half of 2025. These delays are attributed to issues with the Blackwell die and the CoWoS-L packaging technology, leading NVIDIA to explore alternative solutions.
