Nvidia Faces Lawsuit Over Blackwell Chip Patent Claims

Nvidia is facing significant investor scrutiny ahead of a key conference where CEO Jensen Huang is expected to address delays in the rollout of its Blackwell chip. The company has experienced a 15% drop in its stock price due to engineering issues impacting Blackwell's launch, leading to concerns about its future revenue potential. Analysts from Zacks Investment Management and Bank of America emphasize that clarity on Blackwell's readiness is crucial for stock recovery. Meanwhile, Nvidia is also contending with a lawsuit from Xockets, which accuses the company of patent infringement related to technologies essential for GPU clusters, potentially jeopardizing the release of Blackwell GPUs. Despite these challenges, Nvidia's stock remains up over 137% year-over-year, buoyed by the overall demand for AI technologies. Investors are concerned that ongoing legal battles and production delays could hinder Nvidia's growth trajectory in the competitive tech landscape.