Concerns over a delay in Nvidia’s (NASDAQ) upcoming AI chips may be exaggerated, according to analysts. Reports suggest Nvidia’s Blackwell chips might face a three-month delay due to design flaws, impacting customers like Meta (NASDAQ), Google (NASDAQ), and Microsoft (NASDAQ). However, demand remains strong, and Nvidia’s older “Grace Hopper” chips can fill the gap.
Analyst Reassurances
Bernstein’s Stacy Rasgon noted, “Nvidia’s competitive window is so large right now that a three-month delay will not cause significant share shifts.” Nvidia, which dominates over 80% of the AI chip market, is both the largest enabler and beneficiary of AI development.
Despite supply constraints, Nvidia CFO Colette Kress confirmed strong demand for Blackwell chips, with production set to ramp up in the second half. Analysts at TD Cowen expressed confidence that any issues would be resolved through firmware or platform updates.
Nvidia’s AI chip delays are unlikely to impact its revenue or demand significantly, with continued growth in the AI sector ensuring robust performance.
