Nvidia's GB200 Rack Shipments Surge, Easing Market Concerns and Boosting AI Demand

Recent data indicates a significant improvement in the shipment volume of Nvidia's GB200 racks, providing a reassuring market outlook according to Morgan Stanley. Analyst Joseph Moore highlighted that if 2,500 units have already been shipped as of April, and monthly shipments maintain at 1,500 units for the remainder of the year, the total for the year could reach around 15,000 units. Moore has thus assigned an "overweight" rating to Nvidia, believing these figures will alleviate concerns over potential declines in rack numbers.

The rack numbers primarily demonstrate the capacity and delivery capabilities of the GB200 rather than the performance of the chip itself. A single rack may integrate multiple GB200 chips; thus, an increase in rack shipments reflects a higher deployment of chips into data centers, directly illustrating the strong demand for AI computational power.

This anticipated improvement in shipment volume month-on-month suggests a substantial annual increase in shipments. Moore notes that original design manufacturers (ODMs) in Taiwan observed that in April, three ODM manufacturers shipped close to 1,500 racks, aligning with Nvidia's forecast and potentially calming investor concerns.

Moreover, industry checks suggest further improvement beyond April, with potential for continued growth. Companies like CoreWeave and xAI have requested the use of HGX B200 to build racks with configurations of 48 to 64 GPUs.

Moore further remarked that optimism hinges on surveys within the industry with buyers and other market participants indicating robust demand in coming quarters. The central market concern has been over potential bottlenecks, leading to inventory surplus fears, but improved data seems likely to support Nvidia's stock prices favorably.

Given the rapid development in the artificial intelligence industry, Nvidia is always at the forefront of technological innovations as a leading GPU chip manufacturer. The recent improvement in GB200 rack shipments signals deep industry transformations and underlines Nvidia's pivotal role in AI computing infrastructure. As the demand for high-performance AI hardware continues to grow, Nvidia's leading technological edge and strategic market presence are further affirmed.