Supply trails demand for Nvidia’s B200, suggesting future growth: Wedbush

Demand for Nvidia’s (NASDAQ:NVDA) B200 units outpaces supply, suggesting further room for growth in the quarters ahead, said Wedbush analysts after conducting a two-week supply chain check in Asia.

“Supply of B200/GB200 appears to be trailing customer demand even as NVDA production continues to lift,” said Wedbush analysts Matt Bryson and Antoine Legault, in a Monday investor note. “Generally, it appears NVDA is favoring GB200 shipments (with greater tightness of B200 based PCIe solutions). In turn, we see this emphasis as more likely to favor model builder, neocloud, supercomputing, and sovereign data center NVDA server requirements. Such servers should include more NVDA networking, are more likely to be built by OEMs, in-line with Dell’s (DELL) strong Q2, guide, Gigabyte’s uptick in sales, and Wistron’s strong May results.”

Standard, or non AI-driven, server demand has also increased, but it remains unclear if this will hold throughout the remainder of 2025.

“Several comments suggest AMD (NASDAQ:AMD) will realize substantial gains in CPU socket share through 2025,” Bryson noted.

However, he cautioned they are still waiting for more positive feedback on AMD’s MI350.

Demand for hard disk drives appears likely to benefit Western Digital (NASDAQ:WDC) and Seagate Technology (NASDAQ:STX).

“With limitations around head production (and no signs to date that industry participants have plans to lift head capacity), we expect drive supply shortages will remain the norm over the next few quarters, allowing HDD vendors to continue to lift pricing and margins,” Wedbush noted. “We expect WD might see a slightly greater benefit in the near-term given its current capacity advantage with PMR drives, though we continue to see STX as better positioned into 2026 as it migrates a greater portion of its production to HAMR drives.”

Interestingly, Wedbush noted Asian investors were surprised by the recent strength in the U.S. stock market.

“Asian fund managers generally seemed surprised by the US markets’ recent exuberance,” Bryson and Legault said. “And in many of our conversations, they expressed concerns that potential future US policy decisions might weigh on the macro outlook and US stocks (perhaps as we are seeing with the US’s new message on reciprocal tariffs (albeit the deadline has been pushed back again) as well as potential limits on GPU shipments into Malaysia and Thailand.”