20 AI News Investors Should Not Miss

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5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 179

NVIDIA Corporation (NASDAQ:NVDA) is a is an American multinational corporation and technology company engineering the most advanced chips, systems, and software for the AI factories of the future. The company has been the main beneficiary of the AI boom, with its advanced Graphic Processing Units (GPUs) that specialize in supercomputing capabilities supporting generative AI training.

Back in March, NVIDIA Corporation (NASDAQ:NVDA) announced its most powerful Blackwell chips, capable of processing trillion-parameter AI models up to 30 times faster and using one-fourth of power. The chips were supposed to be shipped in the second quarter but were delayed, impacting major tech customers in the process. On Wednesday, October 23, CEO Jensen Huang revealed that there was a design flaw with its latest Blackwell AI chips that led to production and shipping delays. The design flaw has now been fixed. The chipmaker worked with its partner, Taiwan Semiconductor, to resolve the holdup.

“It was functional, but the design flaw caused the yield to be low. It was 100% Nvidia’s fault.”

-Jensen Huang

As per Huang, the complexity of the project contributed to the setback, since there were new chips that needed to be designed and put into production simultaneously. Taiwan Semiconductor helped recover from the yield difficulty and resume the manufacturing of Blackwell. The CEO says that the chips will now ship in the fourth quarter.

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