NVIDIA Holds Strong in WSB Rankings Despite Stock Dip and Strategic Shift
NVIDIA recently held the second position in the latest WSB rankings, maintaining its spot from the previous day. Despite this, NVIDIA's stock sees a decline of 3.66%.
In recent developments, NVIDIA has decided to discontinue the dual chassis version of the GB200 NVL36×2 AI server, opting instead to focus on single chassis versions—NVL72 and NVL36—due to limited resources and customer preferences. This decision is not expected to impact NVIDIA's long-term strategy in AI, though it raises questions about the company's supply chain execution.
NVIDIA originally aimed to develop three AI server cabinets leveraging the Blackwell GPU for AI and high-performance computing (HPC) tasks: NVL36, NVL72, and NVL36×2. However, managing all three proved challenging, particularly when developing two different 72 GPU models. The company has now streamlined its focus to NVL72 and NVL36.
The GB200 NVL72 rack, NVIDIA's most powerful GPU configuration, includes 18 compute trays, 9 NVSwitch trays, and significant power consumption of 120kW. The NVL72 setup offers substantial profit margins, higher than traditional GPU setups, with a starting price of approximately $3 million for 72 B200 GPUs.
Industry sources suggest that while most data centers are unable to support the extreme power requirements of NVL72, there is one primary client considering large-scale deployment. This shift implies that NVIDIA is focusing on the most demanding customer needs with its tailored GB200 NVL72 design.
Looking ahead, NVIDIA plans to release the optimized NVL72 and NVL36. However, broader availability and deployment may not occur until the latter half of 2025, as the complexity of the NVL72 needs additional development time to meet market demands.