Amazon halts Nvidia orders until Blackwell comes out later this year

Posted: May 21, 2024

- Amazon has halted orders of Nvidia's advanced "superchip" to wait for a more powerful new model - The new Blackwell chips are expected to be twice as powerful for training large language models - Amazon has transitioned from Nvidia's Grace Hopper superchip to its successor Grace Blackwell - Analysts predict a potential demand slump for AI chips between product cycles - Shares in Nvidia fell by 1% in early trading on Tuesday - Production of Blackwell chips will ramp up throughout the year, with delivery expected in the fourth quarter - The successor to the Grace Hopper superchip, GB200, is the first product to utilize Blackwell technology - The value of a GB200 chip, including two B100 chips, is estimated to be around $70,000 - Amazon's move may concern investors anticipating tech companies delaying purchases for the new Blackwell model - Demand for Nvidia's H100 chips surged last year, but wait times for delivery have since eased - Nvidia's stock value has nearly doubled this year, but struggles with consistent growth due to chip supply and demand challenges - Nvidia has grappled with managing supply and demand between product upgrades in the past, with cycles of surging demand followed by oversupply



Summarized top reddit comments: - Amazon pauses orders of Nvidia's most advanced "superchip" until Blackwell comes out later this year - Speculation about impact on stock price and company leverage - Investors stressed about NVDA shares - Positive sentiment from investors who hold NVDA stock - Discussion of company strategy and response to order pause - Confirmation that Amazon waiting on Nvidia is a good sign - Interest in company earnings - Mention of potential price dip being a buying opportunity - Reference to popularity of chips and stock price trends - Confident long-term outlook on NVDA



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