Nvidia finally delivers good news on future of the GPU shortage

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The current graphics card shortage has made it hard to be a PC gamer. However, Nvidia thinks the shortfall is a light at the end of the tunnel. The company expects to improve supply by mid-22nd.

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Nvidia’s Chief Financial Officer Colette Kress told the UBS Global TMT conference that the company has been able to increase the supply of GPUs during times of shortage. PCMag, Notably, Nvidia spent billions to negotiate long-term agreements with various manufacturers. This due diligence can lead to more supplies for the graphics card to make, thus reducing the overall shortage.

Nvidia wants to wait until there is a “reasonable amount of supply” to reduce prices.

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“The company will do the appropriate thing to continue procuring more supplies as a whole,” Kress said. “We’ve been able to grow quite well during this year, with each quarter growing sequentially. And we plan to do so for Q4.”

Kress didn’t say which manufacturers Nvidia struck deals with, but Samsung is likely because Nvidia’s Ampere architecture is built on its 8mn process nodes. Kress said long-term deals take some time to have an effect. While the company would love to lower prices, it said Nvidia wants to wait until there is a “reasonable amount of supply” to do so.

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Time will tell if Nvidia is able to truly ease supply issues next year. Even Nvidia’s own CEO Jensen Huang believes the shortfall will continue until next year. That said, Huang has combined his company’s ability to supply from multiple vendors.

In addition to the general partnership with Fab, Nvidia is also trying to push the US government for policy actions. Nvidia, along with other tech companies, is asking the Biden administration to exclude graphics cards from the former Trump administration’s tariffs on imports from China. Tariffs on semiconductors and printed circuit boards (PCBs) have contributed at least partly to the skyrocketing prices of graphics cards.

One of the ongoing problems with scarcity is with scalpers and cryptominers. About 25% of all GPUs sold during the first half of 2021 went to miners. Even if Nvidia manages to increase its supply, it does not guarantee that scalpers and miners will not amplify the additional supply. Nvidia’s next-generation “loveless” graphics cards seem to possess insane power, but no matter what, they’re just as rare as current-gen Ampere cards.




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