Nvidia Admits GPU Scarcity Will Proceed All through 2021

Amid announcements about the RTX Studio range and RTX graphics appearing on Chromebooks on Monday, Nvidia held its first ever investor meeting for fiscal 2022. During the call, Colette Kress, Nvidia's CFO, commented on the GPU shortage that has plagued the market since late last year. And the prospects are not good.

“Overall demand remains very strong and continues to outperform supply, while our sewer inventory remains fairly meager. We assume that the demand will continue to exceed the majority of the supply this year, ”explained Kress in a blog post.

The start of Ampere was very successful for Nvidia and brought Nvidia's gaming division to a new level of sales. Kress stated that Nvidia believes it "has sufficient supply to support sequential growth beyond the first quarter." However, this does not mean that it will be easier to get a graphics card. This just means Nvidia has enough inventory to sell more graphics cards than it did last quarter. With demand continuing to grow, this shouldn't be a problem.

Storage shortages are only part of the complex GPU shortage puzzle. High tariffs for PC components have driven up the cost of the entire amp line, and manufacturer TSMC is still struggling to meet demand. Combine these issues with a thriving scalping market and a lot of miners and gamers looking for the latest versions and the state of the GPU market will begin to clear.

Nvidia didn't talk about what it's doing to address these issues during the investor call. The good news is that Nvidia has the same or more stocks than it did last quarter, and while a GPU is tough to find, they still get into the hands of gamers. Once supply chains are restored from the coronavirus, the best hope for gamers is that the crypto bubble will eventually burst and scalpers move on to the next shiny tech product. Regardless, it looks like the GPU market won't turn the corner until late 2021 at the earliest.

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