Nvidia is grappling with delays in deploying its latest AI chips in data centers, which has led to reduced orders from some of its largest clients. The company's new Blackwell chips are reportedly facing issues related to overheating and chip connectivity, affecting the data center plans of major clients such as Microsoft, Amazon, Google, and Meta. These clients have scaled back their orders for Nvidia's Blackwell GB200 racks, opting instead to wait for upgraded versions expected later this year or considering the purchase of older AI chips. The delays and technical challenges are causing concern about potential impacts on Nvidia's future revenue streams.
The situation has prompted Nvidia's stock to experience a decline, as investors react to the news of reduced orders and potential revenue impacts. Nvidia's stock closed at $133.23 on January 13th, down 1.97% from its previous close of $135.91.