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Nvidia shares fall after reports of Blackwell AI server problems, ahead of earnings reports
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Nvidia shares fall after reports of Blackwell AI server problems, ahead of earnings reports

Nvidia ( NVDA ) stock fell as much as 3% early Monday after a new report from The Information highlighted overheating issues with the latest Blackwell AI servers.

The news also comes ahead of the AI ​​chipmaker’s earnings report, which is expected to be released after the market closes on Wednesday.

The news isn’t the first time problems have been reported with the company’s Blackwell products. In August, The Information reported that the leading AI chipmaker was dealing with design flaws related to the individual Blackwell chips themselves.

Nvidia confirmed fears that Blackwell production would be delayed in its late August earnings report, saying production of the chips would increase in the December quarter, rather than the previously stated target of increasing in the September quarter. The company has not publicly confirmed any design flaws or overheating issues.

Nvidia told Yahoo Finance about its latest AI servers: “The technical iterations are normal and expected.” Nvidia’s so-called GB200 NVL72 server system uses 72 Blackwell chips and 36 of the latest Grace CPUs. Nvidia said the servers are “the most advanced computers ever created.”

According to CEO Jensen Huang, those Blackwell chips will generate “several billion dollars” in sales in the fourth quarter. Customers looking to use the Blackwell server system include Meta (META), Microsoft (MSFT) and Elon Musk’s xAI, according to The Information.

Despite reported issues, Dell Technologies CEO Michael Dell noted in a post on X Monday following the Information report that Dell is shipping an unspecified number of Nvidia’s Blackwell servers as part of its PowerEdge system.

As Yahoo Finance’s Dan Howley noted last week, even an excellent report and good outlook from the company could send the stock price tumbling on Wednesday. For example, Nvidia beat expectations across the board in its most recent quarter, but its shares still fell 6% immediately after it announced results.