Nvidia stock sinks on reports of Blackwell AI server issues ahead of earnings

Published On Nov 18, 2024, 10:57 AM

Nvidia's stock dropped by 3% following reports of overheating issues with its new Blackwell AI servers, which are set to launch before the company's earnings report later this week. The overheating problems come amid confirmation of production delays reported earlier this year. Despite these issues, Nvidia claims the engineering adjustments are typical, and the future sales potential for Blackwell chips remains significant for the fourth quarter. Nvidia's stock, while volatile, has appreciated about 186% over the past year, but investor concerns about potential declines in AI spending could continue to impact performance.

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Negative

The reported overheating issues and production delays of the Blackwell AI servers have created negative sentiment ahead of Nvidia's earnings report, suggesting that if the issues are not resolved or effectively communicated, the stock may face further declines post-earnings.

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New Nvidia AI chips overheating in servers, the Information reports

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