🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Nvidia: Morgan Stanley checks suggest no further GB200 server rack shipment delay

Published 10/01/2024, 06:25 AM
© Reuters
NVDA
-

Investing.com -- Morgan Stanley analysts provided their view on Nvidia (NASDAQ:NVDA)'s GB200 server rack production, noting that recent supply chain checks suggest no further delays in shipments.

Concerns had arisen in the market regarding Nvidia's Blackwell platform, specifically about supply and demand uncertainties, but the production process appears to be on track, according to the investment bank.

"Our latest supply chain checks suggest no further delay for GB200 server rack shipments," Morgan Stanley states.

They also noted that no leakage problems have been spotted, and cable connection issues can be resolved through manufacturing adjustments. Production rollout is scheduled for November 2024, with the first batch of shipments expected by the end of the year.

The bank highlights that while both NVL36 and NVL72 designs should hit the market by late 2024, "NVL72 should be the customer preference for high computing power density and better cost-effectiveness in the long term."

Moreover, Morgan Stanley says some tier-one server buyers will have access to the Blackwell platform around the year-end, while broader shipments to the rest of the market are likely to begin by the end of the first quarter in 2025.

They explain that due to the immense power consumption of GB200 server racks, however, most enterprise buyers may prefer HGX/MGX servers for the Blackwell platform.

Morgan Stanley's analysis suggests that Nvidia's supply chain remains strong, with growth expected in high-speed switches and large-scale 800G switch shipments projected for the fourth quarter of 2024.

"We see the supply chain continuing to progress to mass production toward year-end," writes Morgan Stanley.

While volatility may persist in the short term, the bank remains optimistic, particularly on companies like Wistron, Accton, and Hon Hai for their relationships with Nvidia and contributions to the AI hardware supply chain.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.