“Demand will likely exceed supply”: Nvidia explains RTX 30 shortages



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Speaking at the Credit Suisse Digital Financial Services Conference, Colette Kress, CFO of Nvidia, addressed and partially explained the recent shortages of the company’s new RTX 30 graphics cards such as the GeForce RTX 3080 and 3070 .

She confirmed that wafer shortages at chip supplier Samsung Foundry are a factor, as many have speculated, but also suggested there was more to it. Said Kress:

We have supply constraints, and our supply constraints extend beyond what we see in terms of wafers and silicon, but yes, some constraints are with substrates and components. We continue to work on our supply during the quarter, however we believe that demand will likely exceed supply in the fourth quarter for all games.

She also said it might take “a few months” before Nvidia can catch up with demand, but even qualified that by saying “at the moment it’s really hard for us to quantify.”

Interest and demand in almost all parts of the gaming industry exploded in 2020, presumably as people spend more time at home pursuing hobbies, than they previously would have been (in the pre-pandemic world). But at the same time, COVID-19 has had an impact on the supply lines of electronics companies. These two factors combined have led to many situations where the demand has exceeded the supply of gaming products such as video cards or consoles.

Even at the start of the pandemic, long before the launch of the new 30 Series RTX cards, Nintendo Switch consoles became scarce among retailers around the world as Nintendo struggled to cope with a sudden and unexpected surge in prices. demand this spring. And like Nvidia’s RTX cards, PlayStation 5 and Xbox Series X game consoles | Newly launched s sold out almost instantly each time they became available at online retailers, leaving many potential buyers frustrated.

“We would characterize the launch and what we see as an overwhelming demand,” Kress said. “Every day things keep getting better. But before the end of the quarter we will be able to provide more information.”

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