Nvidia Stock Drops on Report of Snag With Blackwell Chip Servers [Video]

Nvidia (NVDA) shares fell Monday as reports, citing The Information, said that its next-generation artificial intelligence (AI) Blackwell chips have faced problems with accompanying servers that overheat.

According to a Reuters report digesting The Information’s coverage, Nvidia’s Blackwell graphics processing units overheat when connected in server racks designed to hold up to 72 chips. 

The chipmaker, which will release its highly anticipated earnings report on Wednesday, has asked its suppliers to change the design of the racks several times to resolve overheating problems, Reuters said. Reuters indicated that some customers are worried they won’t have enough time to get new data centers up and running.

Nvidia stock was down as much as 1.8% Monday morning and has almost tripled this year.

“NVIDIA GB200 systems are the most advanced computers ever created. Integrating them into a diverse range of data center environments requires co-engineering with our customers,” an Nvidia spokesperson said in a statement to Investopedia. 

“While …