Nvidia’s Shares Hit Record High Ahead of Quarterly Report Despite Possible Delay in Hopper-Generation Accelerators Purchase by Amazon
Nvidia’s shares reached a new all-time high yesterday as investors eagerly awaited the company’s quarterly report. However, some expressed concerns following a Financial Times report. It revealed that Nvidia’s customers, including Amazon, might delay buying Hopper generation accelerators in favor of more efficient Blackwell accelerators when they come to market.
Amazon Delays Accelerator Purchase to Opt for Higher Efficiency
According toFinancial Times, Amazon’s AWS division, which provides cloud services to clients, has decided to hold off on buying more Grace Hopper series accelerators. Instead, they will wait to procure the more potent Grace Blackwell once available. They deem the gap between these two generations’ releases not significant enough to justify purchasing the Grace Hopper.
Amazon Still Open to Other Hopper Series Products
It is worth noting that Grace Hopper (GH200), which combines graphic and central processors on one circuit board, is just one of Nvidia’s accelerator variants. Amazon remains willing to buy Hopper generation’s H100 series accelerators, excluding Grace central processors. The GH200’s successor, the GB200, integrates a pair of B100 “graphics” processors with a Grace central processor. Preliminary HSBC estimates indicate each GB200 accelerator would cost around $70,000, with the complete server system based on them amounting to $3 million.
Reduced Nvidia Accelerators’ Delivery Time Indicates Market Balance
Recent reports indicate that the lead time for Nvidia’s ordered accelerators has decreased, suggesting a balance between demand and supply. However, the disclosure about Amazon’s procurement plans may impact this balance, potentially due to increased supply or decreased demand. But Morgan Stanley analysts believe significant demand slump for Hopper generation accelerators is unlikely. They suggest any volumes left by significant cloud providers will be reallocated among corporate clients and government bodies interested in purchases.
