What just happened? We’re all sick of the GPU market being in such chaos, but could things change this year? Nvidia’s chief financial officer (CFO), Colette Kress, said the company plans to increase its card offerings in the second half of 2022, which will likely coincide with the arrival of the RTX 4000 series “Ada Lovelace “.
Speaking at Needham’s virtual 24th Annual Growth Conference (via Seeking Alpha), Kress said demand for Nvidia’s GeForce products far exceeded supply last year, as we know, but the green team is optimistic that the situation will improve later this year.
“We are working, as we mentioned, in terms of longer-term supply. In the second half of Schedule 22, we believe we will be in a great position with our overall supply in terms of our estimates of that. that we will need to move forward,” Kress explained.
Why the sudden increase in GPU supply? The obvious answer would be the arrival of Ampere’s successor, named Lovelace – we’ve already heard that the new series of cards will arrive in Q3 2022.
This is the second time Kress has said Nvidia will improve its graphics card sourcing in the second half of 2022. At the UBS Global TMT conference last month, the CFO said, “The company as a whole will take the appropriate measures to continue to obtain more supplies. We’ve been able to grow quite well through this year, quarterly, sequentially growing. And we continue to plan to do so for the fourth quarter […] So we think we’ll be in a better supply position when we look at the second half of next year. »
Nvidia tends to release a new family of graphics cards every two years, so we can expect to see the RTX 4000 series in September if it keeps up with the same cadence. Nvidia is rumored to be moving away from Samsung’s 8nm process node, which it uses for the RTX 3000 series, and leveraging TSMC’s 5nm process node, used by Apple, AMD and others.
We’ll have to wait and see if there really are enough RTX 4000 cards to meet consumer demand. TSMC recently pledged to spend up to $44 billion to improve its capacity this year, and the reduced demand from miners is obviously a good thing, but scalpers aren’t going away anytime soon. Additionally, the supply of RTX 3000 cards could tighten further if Nvidia focuses more on producing its latest generation of products.