NVIDIA’s stock fell 1% after Amazon Web Services announced it would pause purchases of Nvidia’s GPU Hopper in anticipation of the upcoming release of the Blackwell GPU. Amazon explained that the decision to halt purchases was logical due to the short timeframe between the release of the Grace Hopper and Grace Blackwell GPUs.
Nvidia is set to report its fiscal first-quarter results, with analysts predicting earnings of $5.58 per share and $24.59 billion in revenue. Despite the impending launch of the Blackwell GPUs, KeyBanc Capital Markets reported that Nvidia was not experiencing a significant impact on its current offerings. Analysts led by John Vinh mentioned that they foresee Nvidia reporting first-quarter results and second-quarter guidance that exceed expectations.
The Blackwell line of chips from Nvidia is scheduled to be launched in the second half of the year. This move comes as part of Nvidia’s strategy to stay competitive in the market and meet the demands of consumers.
In summary, Nvidia’s stock saw a decline following Amazon’s decision to pause purchases of the GPU Hopper in anticipation of the upcoming Blackwell GPU release. Despite this, analysts remain optimistic about Nvidia’s performance and expect the company to report strong first-quarter results and guidance. Nvidia’s Blackwell line of chips is expected to be launched later this year as part of the company’s efforts to stay ahead in the market.
Article Source
https://seekingalpha.com/news/4108792-nvidia-slips-amazon-web-services-confirms-hopper-halt-ahead-blackwell-launch