An Edgewater Research report, published on November 11, 2024, revealed that Nvidia cancelled half of its outstanding orders with Monolithic Power Systems. The report indicated that Nvidia also intended to eliminate Monolithic Power Systems' allocation to most variants of its next-generation Blackwell chips.
The reason cited for these actions was persistent performance issues with Monolithic Power Systems' products. Nvidia engineers reportedly lost confidence in the company's offerings, leading them to seek primary suppliers among Monolithic Power Systems' competitors.
This development represents a significant setback for Monolithic Power Systems, particularly in the crucial AI data center market. The loss of a major customer's business and confidence could have material financial and reputational implications for the company.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.