Morgan Stanley Analysis on Nvidia’s GB200 Server Rack Production
Morgan Stanley analysts provided insights on Nvidia (NASDAQ:NVDA)’s GB200 server rack production, indicating that recent supply chain evaluations suggest there will be no further delays in shipments.
Concerns had emerged regarding Nvidia’s Blackwell platform, particularly relating to supply and demand uncertainties. However, the investment bank reassures that the production process is currently on track.
“Our latest supply chain checks suggest no further delay for GB200 server rack shipments,” states Morgan Stanley.
The analysts noted that no leakage issues have been detected, and any cable connection problems can be resolved through adjustments in manufacturing. Production is set to roll out in November 2024, with initial shipments expected by the end of the year.
Morgan Stanley emphasizes that the NVL36 and NVL72 designs are anticipated to enter the market by late 2024, with NVL72 being the more favored option for high computing power density and better long-term cost-effectiveness.
Additionally, some tier-one server buyers are expected to have access to the Blackwell platform by year-end, while broader distribution to the rest of the market is projected to begin by the end of Q1 2025.
They point out that due to the high power consumption of GB200 server racks, many enterprise buyers might prefer HGX/MGX servers for the Blackwell platform.
Morgan Stanley’s analysis indicates that Nvidia’s supply chain remains robust, with anticipated growth in high-speed switches and large-scale 800G switch shipments expected in Q4 of 2024.
“We see the supply chain continuing to progress to mass production toward year-end,” writes Morgan Stanley.
While short-term volatility may continue, the bank expresses optimism, particularly about companies like Wistron, Accton, and Hon Hai for their collaborations with Nvidia and contributions to the AI hardware supply chain.
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