In its latest update to investors, Nvidia has warned that it expects demand for its products to exceed supply at least until the end of the year.

The update comes before the official release of the company's Q1 earnings, but in a blog post Nvidia CFO Colette Kress stressed that channel inventories remain constrained and that this will likely not change by May as previously expected. That said, Kress does state that Nvidia hopes supply will start picking up 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," said Kress. "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 continue, despite Nvidia claiming that its Ampere launch was a success. It could also mean potential trouble for the rumored Nintendo Switch Pro, which is reportedly going into production in June for a release later this year. The Nintendo Switch Nvidia uses chips, so a limited supply could impact any potential launch.

The ongoing semiconductor shortage is to blame for numerous electronics-related stock issues, most notably the consistently low stock levels of the Xbox Series X|S and PS5. AMD, the company that supplies hardware for all three consoles, previously said earlier this year that it expects this to continue at least through July but has not given an update in some time.



Posted: Apr 15, 2021 6:42 pm
Related Forum: PC Gaming Forum

Source: https://www.gamespot.com/articles/nvidia-says-gpu-shortages-will-persist-until-the-end-of-the-year/1100-6490090/