Every move made by NVIDIA affects the market's nerves!
On Thursday, in the US stock market, Nvidia experienced another sharp decline after a significant increase; On Friday, Nvidia's US stock fell as much as 7% during trading, with significant fluctuations in recent times. At the same time, there are also updates coming out.
Firstly, the United States has initiated an investigation into Nvidia. On the one hand, according to five directly informed sources, lawyers from the Department of Justice are investigating the acquisition of artificial intelligence startup Run: Ai by semiconductor company Nvidia on antitrust grounds. The two companies announced the transaction at the end of April, but did not disclose the price. On the other hand, progressive groups in the United States and Democratic Senator Warren are urging the Department of Justice to investigate Nvidia, arguing that the company dominates the AI chip market and opposing Nvidia's bundling of software and hardware.
Secondly, industry insiders have reported that Nvidia's NV cards have been delayed in shipment. According to reports from securities research institutions, the B100 and B200 models have been cancelled, and previous orders will be delivered at a 20% order quantity. They will be upgraded to B200A and are expected to be delivered starting in the middle of next year. However, it is currently understood that the progress of GB200 has not been delayed.
Finally, according to media reports, Elliott Management, the top hedge fund on Wall Street, which manages about $70 billion (about 500 billion yuan) of assets, told investors that large technology giants, especially Nvidia, were in the midst of a foam, and the artificial intelligence technology that drove their stock prices to rise violently was over hyped. The agency stated that many of Nvidia's largest customers are also developing their own chips, and Elliott doubts whether large tech companies will continue to purchase Nvidia's GPUs in large quantities. According to Wall Street Journal, Elliott declined to comment on the above viewpoint.
Overnight in the US stock market, Nvidia fell as much as 7% during trading, closing at $107.27 per share.
Nvidia under investigation
According to Politico, a US political news website, progressive groups and Democratic Senator Warren are urging the Department of Justice to investigate Nvidia, believing that the company is dominating the AI chip market.
The report pointed out that the heads of Warren United for Progress and nine other organizations wrote a letter this week urging Jonathan Kanter, the antitrust chief of the Department of Justice, to investigate Nvidia's business practices and oppose its practice of bundling software and hardware together. These organizations are primarily anti-monopoly and advocate for government regulation of technology companies. These organizations claim that Nvidia's radical proprietary approach seriously violates industry norms regarding cooperation and interoperability, with the aim of locking in customers and stifling innovation.
In June of this year, Reuters reported that US regulators had reached an agreement to instruct the Department of Justice to oversee potential antitrust investigations into Nvidia.
According to five directly informed sources, lawyers from the Department of Justice are investigating the acquisition of artificial intelligence startup Run: Ai by semiconductor company Nvidia on antitrust grounds. The two companies announced the transaction at the end of April, but did not disclose the price.
Run: Ai has long collaborated with Nvidia to achieve so-called GPU virtualization, which is one of the reasons why Nvidia's market value has risen to nearly $3 trillion. Run: The essence of AI's technology is to enable customers to do more with fewer chips. In the situation where chip supply is in short supply, this is a very valuable service.
As the Department of Justice launches an investigation, regulatory agencies around the world are investigating the thriving artificial intelligence industry, including whether there are national security risks; Is it possible to accelerate consumer fraud; Whether it violates citizens' rights; And whether it involves copyright protection. The core of all these concerns is the fear that a few dominant technology companies will control the market in a centralized manner similar to online commerce, social media, online search, and advertising.
In late July, the US Department of Justice, Federal Trade Commission, European Commission, and UK Competition and Markets Authority issued an unusual joint statement outlining concerns about a few companies having the necessary competitive resources.
Latest news on the product
The latest news about Nvidia's products has also been released.
According to the latest due diligence on the supply chain by overseas research institutions, the commercialization of Nvidia Blackwell platform may be delayed. Blackwell's bulk shipments may be delayed until the end of the first or early second quarter of 2025, several months later than the previously estimated September to October 2024.
This may affect the upcoming product portfolio - B100/200HGX, GB200 NVL36/72, and may even affect all related devices.
However, Nvidia and its key partners are still improving Blackwell products in terms of GPU design, manufacturing, component procurement, subsystem testing, and complex rack system integration, including performance and reliability.
In addition, the Nvidia B100, which was originally planned for mass production in the fourth quarter of this year, may be cancelled and instead focus on producing the GB200. However, according to feedback from some institutions, the Nvidia B-series has only been delayed by 3-4 months, with H200 filling the slots first and GB200 being shipped later without being affected. There is currently a solution in place. A person closely associated with TSMC stated that the main reason for the delay in the plan may be a change in a standard for circuit stability. A new alternative plan has been proposed, which will affect the schedule for no more than four months.
On August 2nd, Shenghong Technology's stock price closed down 9.71% at 34.60 yuan per share. Market rumors suggest that Nvidia may cancel the mass production of B100 chips, which will have an impact on Shenghong Technology's supply orders. According to a report by 21 Finance, the reporter called the Securities Affairs Department of Shenghong Technology as an investor, and the relevant staff stated that Shenghong Technology has noticed the information, but from the current production and operation of the factory, everything is operating normally. Shenghong Technology has related cooperation with Nvidia, and according to the agreement, specific details cannot be disclosed. It is understood that Shenghong Technology is mainly engaged in the research and development, production, and sales of high-density printed circuit boards, and its products are widely used by manufacturers such as NVIDIA and AMD.
At present, there is a strong demand for B200 in the market, and customers are turning from B100 to B200 (with a demand of over 450000 units). The training team of the Meta model also stated that they need to add B200 orders, at least 150000 more B200 units, which were originally expected to be added next month. In addition, Nvidia will mainly launch the H200 product in the third quarter, with an expected performance of over 33 billion US dollars this quarter. Additional H200 will be provided to customers for emergency use from October to November, and everything will be normal by December at the latest.