Nvidia drops on report overheating issue could delay new Blackwell AI servers

Investing.com -- NVIDIA's (NASDAQ:NVDA ) new Blackwell AI chip is said to be having issues with overheating when connected in customized server racks, The Information reported Sunday afternoon. The company is working with suppliers to change the design of the racks to alleviate the overheating issue as anxious customers worry about delays.

Shares slipped 2.9% in premarket Monday trade. 

The AI chip giant has already delayed Blackwell by a quarter due to design flaws that have since been fixed.

The new server racks combine 72 Blackwell chips, creating a powerful AI system. Major customers like Microsoft (NASDAQ:MSFT ), Meta (NASDAQ:META ), and Elon Musk’s xAI have been eagerly awaiting the new Blackwell server racks.

While NVIDIA often adjusts server designs before a launch, the changes to the Blackwell racks are said to be coming late in the game. That said, Nvidia may still be able to deliver the racks to customers on time, and it hasn’t notified customers of any delay.

An NVIDIA spokesperson declined to comment to The Information on whether the Blackwell rack designs have been finalized.

All eyes are on NVIDIA ahead of earnings this Wednesday, November 20th. NVIDIA's stock is up 187% year-to-date.

Source: Investing.com