NVIDIA CEO expects next year to see ‘supply constrained environment
Despite securing significant long-term supply commitments, Jensen Huang, the CEO of NVIDIA is expecting supply constraints through the majority of next year.
Jensen Huang expressed his grim expectations for the 2021 GPU supply just a month after NVIDIA GeForce RTX 30 series were released. Little did we know that his remarks during the Q&A session after GTC Digital 2022 were just a tip of an iceberg that had eventually crashed onto the GPU market beginning this year.
As we are in the 8th month of 2021, finding any NVIDIA GeForce RTX graphic card at MSRP may be quite hard if not impossible. So far we have seen the average price declining steadily since May, which marked the highest prices for GPUs.
Meanwhile, we have and are securing pretty significant long-term supply commitments as we expand into all these different markets initiatives that we’ve set ourselves up for. And so I think — I would expect that we will see a supply contained environment for the vast majority of next year is my guess at the moment.
— Jensen Huang, NVIDIA CEO
During the second quarter 2022 fiscal year earnings call, it was revealed the company scored a record 6.5 billion USD revenue, despite a global shortage of components and substrates. NVIDIA is now confirming that the vast majority of current gaming GPU shipment is based on the LHR (Lite Hash Rate) series, the same series that was recently partially bypassed by cryptomining software developers. In the second quarter over 80% of Ampere-based GPUs that shipped under the GeForce brand were LHR, at the same time CMP mining series supply was lower than expected.
NVIDIA is now expected to launch its Ada Lovelace GeForce RTX 40 series GPUs next year with rumors of using TSMC as their foundry. Our sources claim that using Samsung foundry is still on the table though. After all, using a single foundry by AMD (RDNA3), Intel (DG2) and NVIDIA probably wouldn’t improve the global availability of next-gen GPUs anyway.
Source: @EricJhonsa, Full transcript: Seeking Alpha