Nvidia (NVDA) stock fell Monday after an analyst said the AI chipmaker is “experiencing severe thermal issues” with some power chips used in its latest server systems for artificial intelligence.
TF International Securities analyst Ming-Chi Kuo said Nvidia is having problems with DrMOS chips from Alpha & Omega Semiconductor (AOSL). Nvidia is testing those chips with its Blackwell series GB300 and B300 systems.
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Nvidia also is testing DrMOS chips from Monolithic Power Systems (MPWR). DrMOS, which stands for “Driver and MOSFET Module,” is a voltage regulator that powers processors, motherboards and other electronics.
“My latest supply chain survey indicates that AOS’s chips were experiencing severe thermal issues,” Kuo said in a report.
Nvidia had prioritized testing Alpha & Omega’s power chips in part to “strengthen its bargaining power against MPS to lower costs,” Kuo said.
The issue threatens to delay mass production of Nvidia’s GB300 and B300 systems, he said.
Nvidia Stock Triggers Sell Signal
In afternoon trades on the stock market today, Nvidia stock was down about 2% to 131.63. Earlier in the session, it was down as much as 2.9% to 130.42.
With the decline, Nvidia stock dropped into the stop-loss sell zone of its recent breakout.
On Oct. 17, Nvidia stock hit a buy point of 140.76 out of a 17-week consolidation pattern, according to IBD MarketSurge charts. Based on IBD trading guidelines, the 7%-8% sell zone starts at 130.91.
Elsewhere on the stock market today, Alpha & Omega Semiconductor and Monolithic Power Systems diverged. In afternoon trading Monday, AOS stock dropped more than 6% to 42.40. MPS stock rose more than 4% to 634.01.
Meanwhile, Nvidia stock is on two IBD lists: Leaderboard and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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