Nvidia expects the GPU market to be supply-constrained “for the vast majority of next year”

Nvidia expects the GPU market to be supply constrained

Nvidia expects the GPU market to be supply-constrained “for the vast majority of next year”

As part of the company’s Q2 2022 earnings call, Nvidia’s CEO, Jensen Huang, stated that he expected the graphics card market to be supply-constrained “for the vast majority of next year”, painting a grim picture for PC gamers. 

To explain the issue, Jensen stated that “demand is just too great”, as Nvidia has seen growth in the workstation, enterprise, gaming and cloud gaming markets. With Nvidia seeing such growth in all areas of its business, it is easy to see why the company is supply constrained. 

Jensen calls their RTX lineup a “once-in-a-generation” upgrade, both for workstation users and gamers alike. Gamers get support for new features like hardware-accelerated ray tracing and AI-based technologies like DLSS. At the same time, workstation users benefit from stronger video encoders, ample AI acceleration and tonnes of traditional compute performance. Nvidia’s RTX lineup offers a lot of benefits to many people, and Nvidia has seen strong sales as a result.

Nvidia has confirmed that they have enough supply to meet its H2 2022 growth expectations and their growth expectations for next year. Sadly, Nvidia didn’t comment on their ability to secure any additional supplies.  

Below is what Nvidia’s Jensen Huang had to say during the company’s Q2 2022 earnings call, via Seeking Alpha. 

  

    Okay. We’re [Indiscernible] of Trinity graphics. And we’re supplying constraining graphics while we’re delivering record revenues and gross. Assets. Come gaming is growing. Cloud graphics has grown, growing.

RTX made it possible for us to address the design in the creative workstations. Historically the rendering, ray tracing, and photorealistic imagers have largely been done on CPUs. And for the very first time, and you could actually accelerate with a hundred GPUs and its RTX GPUs, and sort of workstation market is really doing great.

The backdrop of that of course is that people are building offices in their homes. [Indiscernible] meanwhile, of course, RTX has reached that — all of our consumer graphics with the 200 million installed base of PC gamers, and it’s time to upgrade. [Indiscernible] We have enough supply to meet our second-half company growth plans and next year, we expect to be able to achieve our Company’s growth plans for next year.

Meanwhile, we’re happening, and so I think the — I would expect that we will see a supply-constrained environment for the vast majority of next year is my guess at the moment.

But a lot of that has to do with the part of our demand is just too great. RTX is really a once-in-a-generation reset of computer model considered graphics. Nothing like this has happened as, and since the invention is really pipe groundbreaking, and you could see its impact.

Nvidia expects the GPU market to be supply constrained   
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Nvidia expects the GPU market to be supply constrained