Nvidia Stock Plummets on Reported Delay of Its New AI Chip Amid Global Sell-Off [Video]

Nvidia (NVDA) shares plummeted over 7% in early trading Monday following reports that the company’s highly anticipated Blackwell system, including its next-generation artificial intelligence (AI) chips, will be delayed, amid a global sell-off driven by worries about the state of the U.S. economy.

The Blackwell AI chip could be held up by three months or more because of design flaws, The Information reported, citing anonymous sources close to the company. Nvidia told Microsoft (MSFT) and another large cloud provider there was a delay, the article said.

A delay would affect Amazon (AMZN), Alphabet’s (GOOGL) Google, Meta (META), Microsoft, ChatGPT maker OpenAI, Tesla (TSLA), and Elon Musk’s xAI, among others.

Strong demand for Blackwell ahead of its rollout played a key role in helping drive Nvidia’s stock higher this year, and was expected to lift Nvidia partners like Micron Technology (MU) and …