NVIDIA GB200 rack shipments are favorable, Morgan Stanley gives an "Overweight" rating

According to the latest data, NVIDIA (NVDA.US) has seen a significant improvement in the shipment volume of the GB200 racks, and Morgan Stanley believes this will reassure investors. Analyst Joseph Moore stated in a report: "If 2,500 racks have been shipped by April, and the monthly shipment volume remains at 1,500 for the rest of the year, the total shipment volume will reach around 15,000." In this regard, Moore has rated NVIDIA as "Overweight," believing that this data can alleviate concerns about the decline in the number of racks. It is reported that the number of racks reflects the production capacity and delivery capability of the GB200, rather than the performance of the chips themselves. For example, a single rack may integrate multiple GB200 chips, and an increase in rack shipments means more chips are being deployed in data centers, directly reflecting the market's demand intensity for AI computing power. The shipment volume is expected to achieve significant month-on-month improvement, indicating a substantial increase in annual shipments. Furthermore, the aforementioned data suggests that NVIDIA's shipment volume in the April quarter did not exceed demand. Moore stated: "The original design manufacturers (ODM) teams in Taiwan found that the shipment volume of three ODM manufacturers in April approached 1,500 racks, and this turning point aligns with our estimates for NVIDIA, which should alleviate investor concerns." Additionally, recent industry checks indicate that conditions may continue to improve after April, with further upside potential. Companies like CoreWeave (CRWV.US) and xAI have requested to use HGX B200 to build racks with 48 to 64 GPUs. Moore added: "Our optimism is based on industry surveys of buyers and other market participants, which show that demand will significantly increase in the coming quarters. The core anxiety in the market currently revolves around concerns of inventory surplus due to GB200 bottlenecks, and the data improvement is a positive for the stock price."