Nvidia Ahead Of Q3 Earnings Release "Blackwell" server overheated again?

30X LLM inference performance compared to existing models..."Monster Calculator"
U.S. IT media "Blackwell Is Overheating the Server" reported
Blackwell Delayed Launch Due to Previously Defective Production Process

[Anchor]
Nvidia's AI chip "Blackwell," which was about to launch in the fourth quarter, has been found to have overheated servers, which could lead to further delays in mass production, according to reports.

Amid the slowing down of the "Trump Rally" since the U.S. presidential election, Nvidia's third-quarter earnings announcement on the 21st is expected to be a turning point that will determine the direction of the U.S. stock market.

This is Washington correspondent Hong Sang-hee.

[Reporter]
Blackwell, the next-generation AI chip unveiled by Nvidia at the AI conference GTC 2024 in March.

It has been called a "monster calculator" and attracted market expectations as it can expect up to 30 times the large-scale language model (LLM) inference performance compared to the existing Harper series.

[Jensen Huang, Nvidia CEO/March: Blackwell is not a chip. Blackwell is the name of the platform. People think we make GPUs and we actually do, but GPUs are different than they used to be.]

However, there were reports of problems with Blackwell, which is set to launch in the fourth quarter, again.

US IT media "Deformation" reported that when Blackwell was connected to a custom server rack, overheating occurred.


if a defect is found in the production process and the release date is delayed in the last two quarters and the problem of overheating of the server is found to be trueMicrosoft and Google, which ordered
Blackwell, will have to wait for production again.

"The engineering team is working with cloud service providers," Nvidia said. "It is normal to repeat engineering."

In the meantime, Nvidia's third-quarter performance, which will be announced from our perspective on the 21st, is of interest.

In August, second-quarter revenue topped market forecasts at $30 billion, but it also fell more than 7% in after-hours trading as the gains were smaller than before.

[Rob Haworth / Senior Investment Strategist at US Bank Asset Management: We have a big issue on Wednesday called Nvidia (Q3 earnings release). What we want to find here is how much sales growth in artificial intelligence (AI) is and whether we can continue to see revenue.]

'Trump Rally' Leads Rise After U.S. Presidential Election, but

NVIDIA shares plunged 3.25% on the 15th due to comments by Fed Chairman Jerome Powell, who hinted at adjusting the pace of rate cuts, leading to declines in semiconductor and AI-related stocks.

The earnings announcement is expected to be a turning point in the direction of the Trump rally, with Nvidia's third-quarter revenue up more than 80% from last year to $33 billion and net profit to $18.4 billion.

I'm Hong Sang-hee from Washington.