New Nvidia AI chips overheating in servers, the Information reports

Published On Nov 17, 2024, 10:49 AM

Nvidia's new Blackwell AI chips are experiencing overheating issues when placed in server racks designed to accommodate them. This has raised concerns among clients who rely on these chips for their data centers, as delays are noted in the rollout of supporting infrastructure. Nvidia has reportedly been collaborating with suppliers to modify server designs to mitigate these overheating problems. Despite these setbacks, the company continues to assert that engineering issues are common in development phases.

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Stock Forecasts

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Negative

Given the overheating issues and delays in deployment, investor sentiment may turn negative. However, the long-term demand for AI technologies can still support Nvidia's position in the market, making the stock more attractive for long-term investors than short-term traders.

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