https://finance.yahoo.com/news/nvid...ets-to-deal-with-chip-shortage-212549454.html
Nvidia (NVDA) CEO Jensen Huang doesn’t see the global chip shortage coming to an end anytime soon. The head of the largest chip maker by market cap, Huang is fresh off his virtual keynote at Nvidia’s GTC conference where he announced advances in the company’s metaverse and AI efforts.
But Nvidia still makes the bulk of its revenue, about 47% in Q2, from the sale of its gaming cards. And those continue to be in short supply due to the pandemic-induced chip crisis.
“I think that through the next year, demand is going to far exceed supply. We don’t have any magic bullets in navigating the supply chain,” Huang told Yahoo Finance Live on Wednesday.
“We have the support of our suppliers. We’re fortunate that we’re multi-sourced and that our supply chain is diverse and our company is quite large so we have the support of a large ecosystem around us,” he added.
The chip crisis kicked off at the start of the pandemic when automakers, expecting a slowdown in sales, cut their chip orders. But consumers had other plans and started buying up cars in droves. At the same time, consumers, trapped in their homes due to pandemic restrictions, started grabbing everything from workstations and webcams to gaming PCs and game consoles.
With so many industries vying for attention from the small number of global chip makers, a crunch was all but guaranteed. And it continues to play out now. Try buying an Nvidia graphics card or, heck, a PlayStation 5. If you don’t want to pay hundreds of dollars over the manufacturer’s suggested retail price, you’ll likely be waiting a while.
Nvidia (NVDA) CEO Jensen Huang doesn’t see the global chip shortage coming to an end anytime soon. The head of the largest chip maker by market cap, Huang is fresh off his virtual keynote at Nvidia’s GTC conference where he announced advances in the company’s metaverse and AI efforts.
But Nvidia still makes the bulk of its revenue, about 47% in Q2, from the sale of its gaming cards. And those continue to be in short supply due to the pandemic-induced chip crisis.
“I think that through the next year, demand is going to far exceed supply. We don’t have any magic bullets in navigating the supply chain,” Huang told Yahoo Finance Live on Wednesday.
“We have the support of our suppliers. We’re fortunate that we’re multi-sourced and that our supply chain is diverse and our company is quite large so we have the support of a large ecosystem around us,” he added.
The chip crisis kicked off at the start of the pandemic when automakers, expecting a slowdown in sales, cut their chip orders. But consumers had other plans and started buying up cars in droves. At the same time, consumers, trapped in their homes due to pandemic restrictions, started grabbing everything from workstations and webcams to gaming PCs and game consoles.
With so many industries vying for attention from the small number of global chip makers, a crunch was all but guaranteed. And it continues to play out now. Try buying an Nvidia graphics card or, heck, a PlayStation 5. If you don’t want to pay hundreds of dollars over the manufacturer’s suggested retail price, you’ll likely be waiting a while.