Nvidia Corp.’s stock fell 3% in morning trading Monday, after a report of snags with its new Blackwell artificial-intelligence chips.
The company, which is due to report earnings on Wednesday, has run into an issue with its Blackwell graphics processing units, which are overheating when connected in custom server racks, The Information reported on Sunday, citing sources familiar with the issue.
The company NVDA has asked its suppliers to redesign servers for Blackwell a number of times in the past few months, the technology-focused news site reported.
The Blackwell chips have already suffered delays related to design issues. Nvidia Chief Financial Officer Colette Kress said in August that the company was expecting to ship several billion dollars of Blackwell revenue in its fiscal fourth quarter.
Kress made the remarks as the company reported fiscal second-quarter earnings.
The previous quarter, Chief Executive Jensen Huang had said that Blackwell would begin shipping in the fiscal second quarter and ramp in the third quarter. He also said Nvidia would see “a lot of Blackwell revenue” this fiscal year.
Nvidia’s stock is up 187% in the year to date, while the S&P 500 has gained 23%.