On the eve of the financial report, it was reported that the

**Source: Wall Street Journal**  

**Nvidia Receives Key Boost Ahead of Earnings as GB200 AI Server Breakthrough Achieved**  

On the eve of its quarterly earnings report, Nvidia has received crucial positive news—technical hurdles for its next-generation GB200 AI server racks have been overcome.  

According to a May 28 report by the *Financial Times*, Nvidia's supply chain partners have resolved a series of technical challenges with the GB200 AI server racks, and shipments are rapidly scaling up. This development alleviates market concerns about its $43 billion quarterly revenue target and provides a confidence boost ahead of Wednesday's earnings announcement.  

### **GB200 Technical Breakthrough Eases Market Worries**  

At last week's Computex conference in Taipei, Nvidia's partners Foxconn, Inventec, and Wistron confirmed that GB200 racks began shipping at the end of Q1, with production capacity now accelerating swiftly.  

An engineer involved in manufacturing disclosed:  

*"Our internal tests revealed connection issues... The supply chain worked with Nvidia to resolve them, which happened two to three months ago."*  

These challenges included overheating from the 72 high-performance GPUs, liquid cooling system leaks, software bugs, and inter-chip connection problems—issues that had threatened Nvidia's annual sales targets and weighed on its stock price.  

As Nvidia's next-gen AI infrastructure, the GB200 rack is a "computing beast": each unit integrates 36 "Grace" CPUs and 72 Blackwell GPUs, connected via Nvidia's NVLink communication system.  

Chu Wei-Chia, a Taipei-based analyst at SemiAnalysis, noted:  

*"This technology is extremely complex. No company has ever tried to get so many AI processors working simultaneously in a server within such a tight timeframe. Nvidia didn’t give the supply chain enough lead time, causing delays. As manufacturers ramp up rack production in the second half, GB200 inventory risks will ease."*  

### **Market Focus Shifts to Nvidia Earnings**  

The spotlight now turns to Nvidia's Q1 earnings report due Wednesday. The $3.2 trillion company is viewed as a bellwether for AI demand, with investors keen to see whether the explosive growth of recent years can sustain.  

Morgan Stanley highlighted in a May 19 report that Nvidia's path to renewed growth in H2 2025 is clear, with mid-term concerns—including customer digestion cycles, GB200 bottlenecks, and ecosystem coordination—gradually resolving.  

Despite a ~40% rebound over the past seven weeks, Nvidia shares remain ~14% below January's all-time high. The stock currently trades at ~28x P/E, well below its five-year average of 40x.  

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