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Nvidia Launches GB200 NVL72 Hardware Amid Delivery Challenges

May 29, 2025 (7 days ago)
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Nvidia's rollout of its GB200 NVL72 hardware, a single-rack exascale computer, marks a significant product launch, though delivery estimates have been impacted by DeepSeek-related disruptions.

GB200 NVL72 Rollout and Delivery Challenges

  • Nvidia has begun shipping its GB200 NVL72 hardware, a $3 million single-rack exascale computer with 72 GPUs, starting in February1
  • Delivery estimates for the GB200 NVL72 have been halved due to DeepSeek-related disruptions, with Q2 expectations now below 5,000 units1

Hyperscaler Demand and AI Chip Sales

  • Nvidia continues to see strong demand for its AI chips, particularly from major hyperscalers like Amazon, Microsoft, and Google2
  • The company's data center segment, driven by AI chips like the H100 and Blackwell platform, remains a key revenue driver2

International Chip Business and Export Controls

  • Nvidia's international chip business faces challenges from U.S. export controls, though China currently accounts for only 5% of its revenue1
  • CEO Jensen Huang has warned that export restrictions could accelerate China's domestic AI chip development2

Competition and Pricing Pressures

  • Nvidia faces increasing competition from AMD and custom silicon efforts by Big Tech companies, potentially impacting its pricing power2
  • While the company has maintained premium pricing on its high-performance chips, margin compression could emerge as competition intensifies2

AI Market Risks and Opportunities

  • The AI market shows signs of slowing adoption, which could impact Nvidia's growth and valuation2
  • Despite risks, analysts see positive signs for AI adoption in industries like healthcare and finance, supporting long-term demand for Nvidia's solutions3
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