NVIDIA AI GPU Demand Blows Up, Chip Prices Increase By 40% & Stock Shortages Expected Till December
NVIDIA's GPU business is booming thanks to AI but it looks like the company may not be able to meet the demand as it tries to increase production at TSMC.
NVIDIA's GPU business boom has been the result of countless years of betting on AI as the next big thing. With ChatGPT and other generative AI models, it looks like NVIDIA's bets have paid off & the company is getting orders from all corners of the tech industry to get hands on its brand-new GPUs including the A100 and the H100.
Multiple reports are now suggesting that NVIDIA might not be able to keep up with the massive AI chip demand despite its best efforts. A recent report by DigiTimes suggests that as the green team sees a ramp-up in orders for its latest GPUs, the company has started to increase production of its chips at TSMC.
Nvidia has seen a ramp-up in orders for its A100 and H100 AI GPUs, leading to an increase in wafer starts at TSMC, according to market sources.
The AI boom brought on by ChatGPT has caused demand for high-computing GPUs to soar. Coupled with the US ban on AI chip sales to China, major Chinese companies like Baidu are buying up Nvidia's AI GPUs.
via DigiTimes
The NVIDIA A100 utilizes the TSMC 7nm process node while the H100 which began shipping last May, is based on the TSMC 4N process node (an optimized version of the 5nm node designed for NVIDIA). Ever since its launch, the company has seen huge demand for its H100 & DGX H100 GPU-powered servers. Although NVIDIA has tried to keep up with the demand, the recent AI boom has taken a huge toll on the company's effort to keep up with the demand.
In China, where the company is offering a modified version of its A100 and H100 GPUs to bypass the US sanctions, known as A800 and H800, these chips are
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