Nvidia is trading toward the low end of its recent range, with Wall Street questioning whether the chip maker is facing manufacturing issues with its newest server racks.
Nvidia shares were down 0.3% at $131.31 in premarket trading. The stock fell 1.1% on Tuesday and is marginally down over the past three months. The headline news for Nvidia this week has been the Biden administration’s proposal to impose AI chip restrictions that would apply caps on U.S. exports to more than 120 countries.
However, a more important driver for the stock could be reports of issues with the manufacturing of its GB200 NV liquid-cooled rack systems, which contain dozens of its Blackwell chips networked together and is used to train and run AI models.
“Blackwell GPU supply [is] ramping in line; however, low manufacturing yields are significantly limiting shipments of GB200 NVL racks,” wrote KeyBanc analyst John Vinh in a research note.
That led Vinh to cut his estimate for Nvidia’s data-center revenue — which is driven by sales of AI chips — in the company’s fiscal year 2026 to $185 billion from $200 billion previously. However, he maintained an Overweight rating and $180 target price on the stock, noting it should only be a near-term issue.
Among other chip makers, Advanced Micro Devices was rising 0.2% and Broadcom was gaining 0.3% in premarket trading.