Nvidia Corp NVDA The stock is trading lower on Wednesday after Nvidia CEO Jensen Huang confirmed this to Reuters Taiwan Semiconductor Manufacturing Co TSM helped fix a design flaw in its latest Blackwell AI chips.

Nvidia discovered the flaw after unveiling the chips in March, causing production delays that affected Hyperskalar customers like others Meta Platforms Inc META, Alphabet Inc GOOG GOOGL GoogleAnd Microsoft Corp MSFT.

Huang took full responsibility for the error, which resulted in low yield.

Also read: Nvidia meets big tech hyperscalers at HLTH conference and teams up with Microsoft to drive AI innovation

Nvidia plans to ship the Blackwell chips in the fourth quarter, up from its original plan for the second quarter.

Last week's report suggested as much Amazon.Com Inc AMZN and Amazon Web Services' data center plans were delayed due to a production issue with Nvidia's Blackwell chips and won't be available until 2025.

Amazon has entered into a five-year partnership with AI and data startup Databricks to provide companies with more affordable AI development tools. The collaboration leverages Amazon's Trainium AI chips, a lower-cost alternative to Nvidia's GPUs.

Meanwhile, Nvidia continued to expand its geographic footprint by co-developing a custom AI chip with India and making investments in Thailand.

Analysts remained optimistic about Nvidia's prospects despite reports suggesting a delay in Blackwell chip production.

Beth Kindig from I/O Funds believes Blackwell chips will be critical to helping Nvidia reach $10 trillion by 2025. KeyBancs John Vinh predicts the chips will generate over $7 billion in fourth-quarter sales.

CNBC's Jim Cramer and Wedbush's Dan Ives remained optimistic about the chip designer's prospects.

Nvidia shares have gained 224% in the last 12 months. Investors can invest in the stock through the following SPDR S&P 500 SPY And iShares Core S&P 500 ETF IVV.

Price promotion: NVDA shares were down 2.69% at $139.82 at last check on Wednesday.

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