Nvidia stock was falling sharply early on Monday. The chip maker is being hit by fears about economic growth and the production of its next-generation artificial-intelligence processors.
Nvidia shares were down 13.6% at $92.65 in premarket trading. The stock closed down 1.8% on Friday.
The primary cause of the move looked to be a general market rout amid concerns about the U.S. economy and the sustainability of gains built on excitement around artificial-intelligence technology.
Among other chip makers, Advanced Micro Devices was down 6.2% and Broadcom was falling 9% in premarket trading. Server maker Super Micro Computer was dropping 12.75%.
However, Nvidia's particularly sharp move could be partially due to a report that volume shipments of its next-generation Blackwell B200 chip would be delayed by around three months, from technology-focused news outlet The Information.
As Barron's has calculated, such a delay could cause a few billion dollars in revenue for Nvidia to arrive in early 2025 rather than late 2024. Nvidia said production is still on track to increase in the second half of the year but declined to comment specifically on the report.
While the details haven't been confirmed, analysts pointed to potential issues with the manufacturing process of the Blackwell chips with Nvidia's chip-making partner Taiwan Semiconductor Manufacturing, in particular its advanced chip-packaging process, called CoWoS. Nvidia could be forced to prioritize between the Blackwell products, which include the B100, B200, GB200 Superchip, HGX B200 server board, and GB200 NVL72 liquid-cooled rack system.
"We believe Nvidia could be prioritizing CoWoS-L's tight capacity to B200, which has higher value for the GB200 superchip...this may enable Nvidia [to have] better flexibility and be less constrained by TSMC's CoWoS capacity," wrote UBS analyst Sunny Lin in a research note on Monday.