Nvidia: Morgan Stanley Analysis Indicates No Additional Delays in GB200 Server Rack Shipments

Morgan Stanley analysts have shared their insights on Nvidia’s GB200 server rack production, indicating that recent supply chain assessments show no further delays in shipments.

Market concerns had focused on Nvidia’s Blackwell platform, particularly regarding uncertainties in supply and demand; however, the investment bank suggests that the production process is on schedule.

According to Morgan Stanley, recent supply chain checks indicate that shipments of GB200 server racks will not be delayed. They reported no issues with leakage and stated that any problems related to cable connections could be addressed through manufacturing adjustments. Production is set to roll out in November 2024, with initial shipments anticipated by the end of the year.

The bank emphasizes that both NVL36 and NVL72 designs are expected to launch by late 2024, noting that “NVL72 is likely to be the preferred choice for customers seeking high computing power density and improved cost-effectiveness in the long term.”

Additionally, Morgan Stanley mentioned that some leading server buyers are expected to gain access to the Blackwell platform around the end of the year, with wider shipments to the broader market likely to commence by the end of the first quarter of 2025.

However, given the significant power consumption of the GB200 server racks, many enterprise buyers might opt for HGX/MGX servers compatible with the Blackwell platform.

Morgan Stanley’s analysis indicates that Nvidia’s supply chain remains robust, with growth anticipated in high-speed switches. Large-scale shipments of 800G switches are projected for the fourth quarter of 2024.

The firm noted, “We see the supply chain continuing to progress toward mass production by year-end.” Despite potential short-term volatility, they remain optimistic about companies like Wistron, Accton, and Hon Hai, due to their strong ties with Nvidia and contributions to the AI hardware supply chain.