Nvidia (NASDAQ:NVDA) has said that GPU shortage is likely to go in for the rest of 2021. In recent months buying Nvidia GPU has been a challenge because of shortage, and although the company sees the situation easing, there is a grim picture for those thinking of buying its components.
Nvidia expects GPUs demand to continue suppressing supply this year
During the company’s annual investor day, CFO Colette Kress said that they expect demand for their GPUs to continue exceeding supply for the rest of 2021. The company had previously warned that supply could continue to be lean in Q1, and now, as the quarter comes to an end, it is evident that supply is yet to improve significantly to meet demand. This implies that challenges in buying the RTX 30-seres GPUs could continue until 2022.
Nvidia had launched the GeForce RTX 30 Series GPUs in September last year, but ever since the cards went on sale, they have been non-existent. Mostly, they are out of stock at retailers, and when available, they sell out almost immediately. The challenge is due to the current global ship shortage companies face as demand for tech gadgets exceeds supply chains.
Chip shortage to continue through 2022
Intel and TSMC have warned that chip disruption could last up to 2022. The semiconductor shortage has affected even the automobile industry, with car manufacturers scaling back production, and consumers have faced challenges finding new CPUs, graphic cards, Xboxes, and PS5s.
Kress indicated that despite the supply issues currently being experienced, there could be a supply increase as 2021 goes on. Most importantly, supply will increase through this quarter and the rest of the year. However, it won’t be easy to find a new GPU when you have to compete with crypto miners, scalpers, and gamers pushing GPU prices out of the way. If Nvidia manages to keep supply steady for the rest of the year, demand will dip towards the end of the year. This, in turn, will make it easier to buy graphic cards without waiting for long.