Nvidia said to halt development of GB200 NVL36*2 dual-rack 72 GPUs: analyst
Nvidia has halted the development of its GB200 NVL36*2 dual-rack 72 GPUs, according to analyst Ming-Chi Kuo. Shares fell 3.5% following the announcement. Nvidia will focus on the single-rack version of GB200 NVL72 and maintain plans for the single-rack GB200 NVL36. Kuo noted that this decision reflects Nvidia's efforts to balance supply chain execution and customer demand. Despite the changes, long-term trends for AI and Nvidia remain unaffected. Hon Hai plans to begin mass production of servers with Nvidia's GB200 GPUs next month, with shipments in December.
Nvidia (NASDAQ:NVDA) has halted development of its GB200 NVL36*2 dual-rack 72 GPUs, TF International Securities analyst Ming-Chi Kuo said on Tuesday.
Shares fell 3.5% in late morning trading.
"In the future, unless there are customized requirements, Nvidia will only offer the single-rack version of GB200 NVL72 (hereafter NVL72), discontinuing the dual-rack version (NVL36*2)," Kuo wrote in a blog post. "The single-rack GB200 NVL36 (hereafter NVL36) will maintain its original development and shipment plans."
The move does not impact the long-term trends for artificial intelligence or Nvidia, but it does bring questions about the company and the supply chain’s execution capabilities, Kuo added.
"Nvidia’s recent frequent changes to AI server product roadmaps reflect, in my opinion, their attempt to achieve a better balance between supply chain execution, competitive advantage, and customer demand under limited resources (discontinuing NVL36*2 development is one example)," Kuo explained. "This is a good thing, indicating Nvidia’s more pragmatic approach to the product plan, but the transition may confuse some market participants regarding supply chain changes."
Nvidia did not immediately respond to a request for comment from Seeking Alpha.
Separately on Tuesday, a spokesman for Hon Hai told Bloomberg that it would start mass-producing servers with Nvidia’s GB200 GPUs next month, with shipments to occur in December.