Nvidia Corp. shares rose 0.2% in premarket trading on Monday despite a report indicating delays in its next-generation AI infrastructure. The company's Kyber rack, designed to house 2027 Rubin Ultra chips, has been pushed back to 2028 according to semiconductor outlet SemiAnalysis in an X thread on Sunday. The delay stems from difficulties manufacturing a specialized circuit board called the PCB midplane that connects electronic modules within the system. The setback affects Nvidia's plans to pack 144 of its most powerful chips into a single server cabinet, while the alternative NVL72x2 back-to-back rack architecture was canceled entirely. This development occurs as Nvidia competes in the rapidly evolving AI infrastructure market where scalability and production timelines directly impact customer adoption.
SemiAnalysis Reports Kyber Rack Delayed to 2028
SemiAnalysis stated in an X thread that "Kyber NVL144 rack architecture has been delayed to 2028 as the PCB midplane remains challenging from a manufacturability standpoint." The Kyber system is a server cabinet designed to enable 144 of Nvidia's most powerful chips to work together as one unified computer. The PCB midplane is a specialized circuit board that connects electronic modules within the system. Nvidia's NVL72x2 back-to-back rack architecture, an alternative to Kyber, was also canceled, leaving Rubin Ultra with a limited scope for scale-up.
Nvidia Ships Current-Generation Rubin Systems This Fall
Nvidia's current-generation Rubin chip systems are in full production and begin shipping this fall. Early customers include Amazon Web Services, Microsoft Azure and Google Cloud.
Nvidia Announces Revenue-Sharing Program Last Wednesday
Last Wednesday, Nvidia announced a revenue-sharing program designed to give AI startups, model builders, and enterprises access to its computing infrastructure without requiring them to finance hardware buildouts themselves. In return, Nvidia will take a share of their future revenue. The company said two firms, Australia's Sharon AI and Indonesia's Firmus Technologies, were the first to sign up for the program.
Stocktwits Sentiment Remains Bearish for NVDA
On Stocktwits, the retail sentiment for NVDA was 'bearish,' unchanged over the past week. The message volume for the ticker rose 9% in this period. Traders remain increasingly frustrated by the stock's underwhelming performance, which is up 4.6% year to date. NVDA stock gained 7.4% in the first half of the year, recording their worst six-month performance since the latter part of 2022. A trader wrote, "$NVDA my word for this week is patience."
FAQ
What caused Nvidia's Kyber rack delay to 2028?
According to SemiAnalysis, the delay stems from difficulties manufacturing the PCB midplane, a specialized circuit board that connects electronic modules within the system, from a manufacturability standpoint.
When will Nvidia begin shipping its current-generation Rubin chip systems?
Nvidia's current-generation Rubin chip systems are in full production and begin shipping this fall, with early customers including Amazon Web Services, Microsoft Azure and Google Cloud.
What is Nvidia's revenue-sharing program announced last Wednesday?
The program gives AI startups, model builders, and enterprises access to Nvidia's computing infrastructure without requiring them to finance hardware buildouts themselves, in exchange for a share of their future revenue. Australia's Sharon AI and Indonesia's Firmus Technologies were the first to sign up.
