After a long hard year of PC hardware shortages and ludicrously inflated prices, we were all hoping that something, anything, would happen by the end of the year so that 2022 would be much better. Well, it’s certainly better now than a few months ago, but Nvidia has just confirmed they expect supply constraints on their RTX 30 series graphics cards throughout 2022 as well.
Speaking in a recent investors call, Jensen Huang, CEO of Nvidia, noted to investors that despite the incredible popularity of the RTX 30 series (their best selling GPU series in their history), only 20% of Nvidia’s userbase has upgraded to an RTX card. Although they would like that to improve, supply constraints will remain throughout 2022:
“In addition, we expect sequential growth in each of our three other market platforms. Gaming demand is continuing to exceed supply as we expect channel inventories to remain below target levels as we exit Q3,” Huang said.
“Meanwhile, we have and are securing pretty significant long-term supply commitments as we expand into all these different markets initiatives that we’ve set ourselves up for. And so I think — I would expect that we will see a supply contained environment for the vast majority of next year is my guess at the moment.”
It’s not exactly what any one of us want to hear, but to hear straight from the horse’s mouth isn’t very comforting either. Essentially, whilst everything may improve over the coming months/year, don’t expect everything to return to normal again anytime soon.
The good news at least is that we’re likely to see graphics cards drop down to or at least close to their original MSRP before supply issues are fixed. This is because although the main issues of limited availability is still a problem, it is still improving somewhat. Plus, the crypto mining demand has decreased dramatically, and Nvidia even stated that 80% of all GPUs sold in Q2 2021 went to actual gamers, not miners.
What do you think? Were you hoping for GPU supplies to improve by 2022? Do you think they might improve sooner? Or possibly even later than 2022? Let us know your thoughts!