It’s no secret that the past couple years have not been good for PC gamers, at least in terms of hardware. Not only is availability low, but because demand is so high as well we have often seen prices skyrocket above their original MSRP, with no sign of getting better. Now Nvidia believes supply will improve a lot more in the second half of 2022, right before the launch of their RTX 40 series GPUs.
“So even throughout all of calendar 2021, we have seen strong demand for GeForce. And it continues to remain strong and stronger than our overall supply that we have,” said Colette Kress, CFO at Nvidia. “The holiday demand, for example, was quite strong, particularly in laptops. And we're still finishing out our quarter.”
“But we'll look at the end of the quarter in terms of what we've seen in terms of channel levels. We had seen channel levels be quite lean, and we are working with our supply chain partners to increase the availability of supply. And we feel better about our supply situation as we move into the second half of the calendar year '22.”
It’s not exactly a guarantee that supply will get much better in 2H 2022, but it is a sign of improvement, if only a little. At the same time, many other companies stated that the end of 2022/2023 will be when things start to ease up (like AMD, Acer, TSMC and Intel etc.), as many new factories have been built to keep up with demand.
Nvidia hasn’t stated exactly what the reason for the supply improvement will be, but it will conveniently come right before their next-gen RTX 40 series of graphics cards will launch. According to a recent rumor, Nvidia has spent billions in order to acquire a large amount of wafers from TSMC for their RTX 40 series GPUs, so it seems that Nvidia is preparing much more for a massive wave of demand at launch this time round compared to the RTX 30 series.
2022 also marks the year that Ethereum will move to a proof-of-stake model, effectively rendering GPU mining useless for the coin. That will hopefully have an impact on GPU demand and therefore supply, leaving more for actual gamers. But the world of cryptocurrency remains ever elusive, and it’s not exactly a guarantee (though one can hope!).
What do you think? Do you believe GPU shortages will improve by the second half of the year? Do you think Nvidia will prepare more in terms of supply at launch for their RTX 40 series cards? Or do you think this is all just wishful thinking once again to get our hopes up? And will crypto mining popularity die down this year, improving supply and prices even more for gamers? Let us know your thoughts!