Nvidia is seeing a bump in GPU sales in the market over its AI capabilities. However, while this is great news for its GPU business, it would also have the company face stock shortages till the end of this year.
Nvidia GPU shortages could last till December
The company will likely struggle to meet demand as it tried to have TSMC to increase production. For those unaware, Nvidia’s graphics card’s chips are manufactured by TSMC. The boom in the GPU business for the brand also arrives amid the surge in AI applications. For those unaware, the American tech giant had bet on the advancements on AI technologies that ChatGPT and other AI based models are now based on. Notably, this is also in line with our previous report that mentioned AI chips from the company selling for a whopping 40,000 US Dollars on eBay.
This demand is particularly high for its brand new A100 and H100 GPUs that tech firms are seeking to buy. As of right now, reports have also claimed that the massive demand for AI chips has caused stock issues for Nvidia, who is struggling to meet these high demands. Furthermore, Team Green is also looking to bump up its orders to the world’s largest contract chipmaker, TSMC, since its A100 GPU is based on its 7nm process while the H100 is based on the more advanced 4nm TSMC process node.
The high demand has also led to a spike in prices as well. The company is selling modified versions of its A100 and H100 GPUs that are dubbed A800 and H800 (to circumvent US sanctions) at a price that is 40 percent higher than its MSRP. Even the delivery cycle for the new cards have been impacted as Nvidia seeks to ship GPUs to tech firms outside of China first.
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