“Not anywhere near” meeting GPU dema

Nvidia CEO: ‘We’re Not Anywhere Near’ Meeting GPU Demand

https://www.forbes.com/sites/jasonevangelho/2018/03/27/nvidi…

In an uncharacteristically frank comment during a recent interview with TechCrunch, Nvidia CEO and co-founder Jen-Hsun Huang called out the surging demand for graphics cards, and admitted that Nvidia is struggling to get enough hardware into circulation to quench that demand.

Nvidia has taken tepid steps toward boosting sales to gamers by encouraging retailers to impose quantity restrictions at checkout, but it’s not uncommon for larger mining operations to flash cash in front of a retailer and buy out their entire stock, often before it’s arrived on the shelves. Sometimes those mining farms will also go directly to GPU board partners who design custom versions of AMD and Nvidia graphics cards and buy directly.

The takeaway here is that Nvidia is setting expectations, which is smart. And its certainly doing everything in its power to ramp up production to whatever levels are needed, but are handicapped by factors like memory shortages. Ramping up production in that sector is not an overnight process. Assuming that the cryptocurrency market remains flat – or continues slowly dipping – and the leading manufacturers of memory can vastly increase production, we should see GPU supply begin to quench the demand by Q4 2018.

Dominic
Long NVDA

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https://finance.yahoo.com/news/nvidia-looks-ai-future-132336…

The Forbes article was referencing the TechCrunch interview of Jensen Hwang from yesterday.

Yes, NVDA is struggling to get enough product to market to satisfy all the demand. Looks like another big beat is in the works this quarter and it would be much bigger if NVDA could get more GPUs to the retailers.

Chris

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That’s a bad thing, not a good thing.

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But if mining is part of a bubble (and I think there’s a good chance of that), and Nvidia builds lots more manufacturing capacity, then they’re screwed when GPU demand no longer includes super-high mining demand.

Nvidia does not build capacity, they outsource all their manufacturing of chips.

Even if Nvidia were to do something to dramatically increase production, there are bottlenecks as DRAM supply is limited and there is only so much to go around.

Tinker

Any good DRAM investments?

Is that MU?

That is Micron.

Tinker

when you are making money hand over fist you can pay a bit more for DRAM compared to a company that is struggling
So I doubt that Nvidia is constrained by that. Pay more get more

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