Reports emerged of NVIDIA Blackwell AI chip overheating issues affecting early deployments.

NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares came under pressure on Monday morning following reports of overheating issues with the company's new Blackwell artificial intelligence chips. According to a report from the Information, the graphics processing units experienced problems when placed together in server racks designed to house up to 72 chips. Shares fell 2.9% to $137.83 in early trading as a result of the emerging concerns.

The overheating problems have prompted worry among data center customers about potential delays in their orders. Wedbush analysts indicated that Nvidia would likely face scrutiny at the Supercomputing 2024 conference in Atlanta this week as a consequence. The analysts noted that "server designs were still being finalized as of last month," though they added they would "be surprised" if shipments were "meaningfully delayed."

To address the thermal challenges, Reuters reported that Nvidia has asked suppliers to adjust server rack designs on several occasions. In response to these modifications and uncertainty, "some customers may be shifting orders back to H100 and H200-based servers in order to ensure capacity is added in a timely fashion," according to Wedbush's assessment.