NVIDIA announced with its statement the other day that the players will struggle with the graphics card stock problem throughout 2021.
NVIDIA has released a statement addressing issues with GPU procurement and production. Colette Kress, the company’s CFO, announced that the graphics card stock problem will continue throughout 2021, in NVIDIA’s annual investor’s day statement earlier this week.
The company’s CEO, Jensen Huang, has made several statements about the GPU shortage that has persisted since the release of the GeForce RTX 30 series. The company notes that along with shipping and logistics, the lack of components has also resulted in under-supply for next-generation graphics cards, resulting in price increases by various retailers. At the same time, the explosion of interest in cryptocurrencies, the fact that cryptocurrency miners are purchasing large amounts of gaming graphics cards, and the decrease in the number of graphics cards that can be purchased for real PC gamers, are another reason for these price increases.
The biggest factors that cause low production are the lack of raw materials, outsourcing, the conditions created by the epidemic and the resurgence of crypto money mining. At the same time, we can say that another factor that does not affect production but affects the price is the absence of tariff exemptions. This even leads hardware manufacturers to increase the prices of their components.
As resources and outsourcing go hand in hand, the first three factors can be combined. However, we can also see that the pandemic process limits the production process. NVIDIA is described as a non-factory semiconductor developer. This means that the company does not have a mass production capacity. The company needs TSMC and Samsung to produce GPUs. As a result of the conditions created by the pandemic, the production shortage experienced by these companies is returning to NVIDIA as a lack of raw materials.
The company is trying to return some of the production to the hands of PC gamers by taking various measures, such as limiting the crypto hash rate on new gaming graphics cards and launching CMP series GPUs that focus on crypto mining. However, this does not seem to have helped NVIDIA very well, because the selling prices of CMP cards are at very low levels, which is not something that does not suit those who will do crypto mining. At the same time, CMP cards cannot provide the same benefits as a gaming graphics card. Even NVIDIA’s older generation GeForce cards provide a much higher hash rate at a lower price than CMP cards.
Finally, it should be noted that NVIDIA is working to change the situation in favor of gamers, but the current situation does not seem to change until 2022.