This article does not constitute investment advice. The author holds no positions in any of the stocks discussed here.
NVIDIA’s Recent Developments with Blackwell GPUs
NVIDIA has been experiencing significant challenges related to its Blackwell GPUs. However, in a positive turn of events, the tech powerhouse has made strides in refining the production of its advanced graphics cards. One foundational change involves switching to the new Blackwell Ultra GPU’s compute board, which has sparked favorable reactions from analysts on Wall Street.
KeyBanc Highlights Positive Shift
Investment firm KeyBanc recently reported on NVIDIA’s strategic transition to the Bianca compute board. This new design incorporates a single CPU alongside two GPUs, replacing the previous Cordelia board that utilized two CPUs and connected to four GPUs for the GB300 Blackwell Ultra offerings.
Understanding the Shift in Compute Boards
The rationale behind this adjustment is notably technical. KeyBanc explained the reason succinctly:
“We believe this change was due to a signal loss performance issue related to Cordelia, as it utilizes a SXM (Server PCI Express) socket interface that was intended to support the enablement of a broader supply chain and provide better serviceability, which is in contrast to Bianca, which has a more fixed board structure with limited flexibility.”
While Cordelia offered greater maintenance convenience through the Server PCI Express interface, its structural flexibility sometimes resulted in signal loss issues. This prompted NVIDIA’s adaptation to the more robust Bianca compute board.
Implications for NVIDIA’s Future Launches
KeyBanc also expressed optimism that this shift will help NVIDIA adhere to its planned launch schedule for the GB300 in the fourth quarter of 2025, facilitating a smooth transition from the Blackwell to Blackwell Ultra variants.
Moreover, NVIDIA is set to ship approximately 30, 000 GB NVL rack units this year, with expectations that only 30% of these shipments will occur in the first half of 2025, leaving the remaining 70% for the latter half. The analysis suggests that reverting to the Bianca board will reduce operational disruptions during this transition, effectively serving as a drop-in replacement for NVIDIA’s existing NVL72 rack structure evolving from GB200 to GB300.
Market Sentiment and Recent Challenges
The recent insights from KeyBanc are particularly encouraging for NVIDIA supporters, especially after facing a series of negative news cycles. Recently, NVIDIA indicated that it anticipates charges of up to $5.5 billion in its fiscal Q1 2026, concluding on April 27, attributed to new export licensing regulations introduced by the Trump administration affecting the China-targeted H20 GPU.
Compounding these challenges, Huawei has unveiled the Ascend 910C, a new AI chip that rivals NVIDIA’s H100 GPUs by integrating the capabilities of two smaller 910B units, further intensifying competition in the market.
For more detailed insights, you can access the original report here.
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