SafariSpinQuest| Amazon suspends subscriptions to Nvidia Hopper chips investors worry about disruption in demand

Sina Technology News On the evening of May 21, Beijing time, it was reported that AWS, Amazon's cloud computing division, has suspended ordering Grace Hopper, Nvidia's most advanced "super chip", waiting for the more powerful new product Grace Blackwell (GH200). The move comes amid concerns among investors that Nvidia will see a decline in demand between product cycles.

In March this year, Nvidia releasedSafariSpinQuestA new generation of processors called Blackwell is less than a year after its predecessor, Hopper, began shipping to customers. Nvidia CEO Huang Renxun said the new product will double its ability to train large language models.

Grace Hopper was officially launched in August this year. AWS also confirmed the news to the media, saying that the time interval between the two products is very short and it is reasonable to wait for a new product.

In response, Nvidia declined to comment before Wednesday's quarterly earnings report, citing the silent period rule. In early trading on Tuesday, Nvidia's shares fell about 1%.

Analysts expect Nvidia's sales to triple in the quarter, driven by large technology companies 'heavy investment in AI technology. But some investors have begun to question how long this extraordinary growth momentum can last.

In a note to clients this week, Morgan Stanley analysts said that despite major technology companies promising to continue investing tens of billions of dollars this year to build data center infrastructure for AI, Wall Street is anxious about Nvidia's pause before launching Blackwell.

Production of new Blackwell chips will gradually increase this year. Analysts expect them to be delivered in the fourth quarter. Citi analysts believe that during this period, there will be a gap in demand for NVIDIA AI chips.

Neither Amazon nor Nvidia would disclose the value of the order. Analysts at HSBC estimate that a GB200 chip will cost as much as US$70,000, while an entire server equipped with this new technology can cost as much as US$3 million.

AWS will continue to provide its cloud customers with cloud services, including the H100SafariSpinQuestHe has a NVIDIA chip. But as one of Nvidia's largest customers, AWS's move could worry investors, who have previously worried that technology companies will delay purchases while waiting for Blackwell to go public.

For most of the last year, with the launch of OpenAI's groundbreaking ChatGPT, which triggered a wave of investment in AI infrastructure by cloud and Internet companies, start-ups and corporate buyers, Nvidia's H100 AI chips fell far short of demand. But since the beginning of 2024, the long wait for the H100 chip has eased.

As investors are confident in the demand for AI chips, Nvidia's share price has almost doubled since the beginning of the year. But since Blackwell was launched in March, Nvidia's share price has struggled to show sustained gains.

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