Nvidia Stock Drops on Report of Snag With Blackwell Chip Servers | Global News Avenue

NVIDIA (NVDA) shares fell on Monday, reportedly citing informationsaid its next generation Artificial Intelligence (AI) Blackwell chips have faced problems with servers overheating.

according to a Reuters Report summary informational Nvidia’s Blackwell graphics processing units have reportedly overheated when connected to server racks that can hold up to 72 chips.

The chipmaker will release its highly anticipated earnings report on Wednesday has repeatedly asked its suppliers to change rack designs to address overheating issues, Reuters explain. Reuters It said some customers were concerned they wouldn’t have enough time to get new data centers up and running.

Nvidia shares were down 1.8% on Monday morning, having nearly tripled this year.

Nvidia says engineering changes are ‘normal’

“The NVIDIA GB200 system is the most advanced computer ever built. Integrating them into various data center environments requires co-design with our customers. “ An Nvidia spokesperson said in a statement Investment Encyclopedia.

“As our customers race to be first in the market, NVIDIA is partnering with leading CSPs (cloud service providers) as an integral part of our engineering teams and processes. Engineering iterations are normal and expected,” the spokesperson added.

NVIDIA Chief Executive Officer (CEO) Jensen Huang calls Blackwell chips “ Completely changing the rules of the game Nvidia said it expects Blackwell revenue to reach billions of dollars in the first quarter as production ramps up.