NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares came under pressure on Monday morning after reports emerged of overheating issues with the company’s new Blackwell artificial intelligence chips.
Shares fell 2.9% to $137.83 in early trading, following a report in the Information that the graphics processing units ran into issues when placed together in server racks.
Units overheated when connected in racks built to house up to 72 chips, Information-cited sources said, prompting concern over delays among data center customers.
Wedbush analysts said Nvidia would likely come under scrutiny at this week’s Supercomputing 2024 conference in Atlanta as a result.
“We had heard that server designs were still being finalized as of last month,” Wedbush noted, but added it would “be surprised” if shipments were “meaningfully delayed”.
According to Reuters, Nvidia has asked suppliers to tweak server rack designs on several occasions in order to resolve the heating issues.
“In turn, some customers may be shifting orders back to H100 and H200-based servers in order to ensure capacity is added in a timely fashion,” Wedbush added.