As initially reported by PCMag, Nvidia believes it will counteract the GPU shortage to a large degree by mid-2022. Nvidia's Chief Financial Officer Colette Kress commented at the UBS Global MTM conference yesterday that supply will begin to improve in the second half of 2022.
"The company as a whole will take the appropriate work to continue to procure more supply," Kress said. She also said that Nvidia continues to increase supply during the shortage, "We've been able to grow quite well during this year, each quarter, sequentially growing. And we do continue to plan to do that for Q4."
That's not surprising to hear, given how Nvidia can sell every card it makes even though they're selling at record pricing.
However, there is some good news: "So, we believe we will be in a better situation in terms of supply when we look at the second half of next year," Kress said.
Kress said Nvidia had poured billions of dollars into spending agreements for long-term manufacturing capacity commitments. Unfortunately, Kress didn't say which fabs Nvidia dealt with, but we can assume Samsung was part of the deal due to Ampere's reliance on Samsung's 8nm nodes. Nvidia could also have partnered with TSMC to produce the new RTX 2060 12GB that still uses TSMC's older 12nm silicon.
However, despite the agreements, Kress does mention that "long-term" supply agreements can take more than a year to have an impact, meaning that a lot of Nvidia's bolstered wafer capacity could roll in over a period of time.
Still, Nvidia believes there's a chance supply could start to become better by mid-2022. Kress says Nvidia does want to reduce the prices of its graphics cards, but market supply will have to improve greatly to meet demand, thus preventing the stock issues that are still prevalent today.
That said, Kress also notes it's unclear when the graphics card market will reach a stabilization point and supply fully meets demand. She said she'll have to wait until after the holidays to see how inventory fares, so even Nvidia won't really know if the market is stabilizing or not until early next year.
