Nvidia’s latest update to investors had a major warning attached: demand for its products will likely exceed supply until the end of the year.
This update comes before the official release of the company’s Q1 earnings, but in a blog post Nvidia CFO Colette Kress made it clear that channel inventories remain constricted and that this is unlikely to change by May as perviously thought. That said, Kress does state that Nvidia hopes supply will boost a little in the coming months, eventually meeting demand in the new year.
“Overall demand remains very strong and continues to exceed supply while our channel inventories remain quite lean,” Kress said. “We expect demand to continue to exceed supply for much of this year. We believe we will have sufficient supply to support sequential growth beyond Q1.”
This means that GPU shortages will only continue, despite Nvidia’s claims that its Ampere launch was successful. If the rumored Nintendo Switch Pro are to be true, this could mean a potential problem. It’s been reported the console is going into production in June, releasing later this year and using Nvidia chips (with this limited supply it could impact any potential launch).
The ongoing semiconductor shortage is partially to blame for numerous electronic-related stock issues, the most notable being the constantly low levels of Xbox Series X|S and PS5s. AMD, the company that supply the hardware for all three major consoles, has said previously this year that it expects the shortage to continue to at least through July. They have not given an update in several months.