GB200 to be the focus of AI server research in 2024, but limited contribution visibility to Hon Hai currently
1. The more customers adopt the Grace architecture, the better for Nvidia’s competitive advantage in AI. However, shipments of the GH200 have been lower than expected, and only Amazon has adopted it among major global customers. Therefore, Nvidia has high hopes for GB200 and is deliberately widening the specification gap between GB200 and B100/200 (mainly related to NVlink and network speed) to increase customers’ willingness to purchase GB200 through solution segmentation and differentiation.
2. The current shipment visibility of GB200 is not high, and it is currently difficult for most suppliers to estimate the actual contribution.
3. Customer concerns about adopting Grace are: 1) the ROI of continuing to build AI computing power and 2) the bargaining power against Nvidia will continue to erode in the long term. These concerns are one of the main reasons for the current low visibility of GB200 shipments.
4. It remains to be seen whether the GB200 differentiation strategy will be successful. If the demand for GB200 is lower than expected, Nvidia may introduce the B200 NVL72 (Miranda platform) earlier and modify the specifications and solution strategy of the upgraded GB200 version (mass shipments in 1H26). Nvidia’s strategy is flexible, but the supply chain may not benefit from this flexibility.
5. Hon Hai/Ingrasys is expected to benefit from a closer partnership with Nvidia in the long run. However, it should be noted that Nvidia has recently changed its GB200 development strategy and invested more in its system development, reducing its dependence on Hon Hai/Ingrasys’ GB200 development. It may be that the market has recently been overly optimistic about Hon Hai/Ingrasys’ system development advantages, order visibility, and GPM in GB200.
6. Will Foxconn Technology benefit if Ingrasys obtains the AI server order? It is possible from the perspective of both being part of the Hon Hai Group, but not necessarily from a technology perspective (as Ingrasys’ capabilities and experience are far superior to Foxconn Technology’s).
2. The current shipment visibility of GB200 is not high, and it is currently difficult for most suppliers to estimate the actual contribution.
3. Customer concerns about adopting Grace are: 1) the ROI of continuing to build AI computing power and 2) the bargaining power against Nvidia will continue to erode in the long term. These concerns are one of the main reasons for the current low visibility of GB200 shipments.
4. It remains to be seen whether the GB200 differentiation strategy will be successful. If the demand for GB200 is lower than expected, Nvidia may introduce the B200 NVL72 (Miranda platform) earlier and modify the specifications and solution strategy of the upgraded GB200 version (mass shipments in 1H26). Nvidia’s strategy is flexible, but the supply chain may not benefit from this flexibility.
5. Hon Hai/Ingrasys is expected to benefit from a closer partnership with Nvidia in the long run. However, it should be noted that Nvidia has recently changed its GB200 development strategy and invested more in its system development, reducing its dependence on Hon Hai/Ingrasys’ GB200 development. It may be that the market has recently been overly optimistic about Hon Hai/Ingrasys’ system development advantages, order visibility, and GPM in GB200.
6. Will Foxconn Technology benefit if Ingrasys obtains the AI server order? It is possible from the perspective of both being part of the Hon Hai Group, but not necessarily from a technology perspective (as Ingrasys’ capabilities and experience are far superior to Foxconn Technology’s).
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