NVIDIA Drastically Reduces Delivery Times Of Its AI GPUs As Supply Chain Witnesses Improvement
NVIDIA's supply chain of its AI accelerators has reportedly witnessed a massive improvement as the firm reduces delivery times drastically.
NVIDIA's AI GPUs Delivery Times Reduced Significantly But Political Conflicts & Generational Lackings May Pose Financial Risks Moving Forward
The news comes from UBS analysts, who have claimed that NVIDIA's efforts to diversify their supply chain have finally started to work out, as the firm has now reduced the wait time of its AI GPUs from 8-11 months to 3-4 months. The reason behind this significant cutback in delivery times hasn't been disclosed yet. Still, Team Green has been working for quite some time now when it comes to upscaling its partners in the supply chain, especially with the inclusion of Samsung Foundry to manage the HBM department.
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Apart from this, existing partners like TSMC and SK hynix have also rapidly expanded their production capacities, with TSMC reportedly reaching 32,000 units of CoWoS output by the end of this year, which is huge because at the start of 2023, this number is much lower. Moreover, the same situation has been in the firm's wafer output, which means that the global semiconductor supply is in a much better position compared to what it was a year ago.
However, not everything is rainbows for NVIDIA since the firm has seen a decline in AI consumer interest, not because of its products but because of the political situation the company has been dragged into. With the ban on exporting the firm's cutting-edge H100 and A100 AI GPUs to China, the firm has already seen a decline in sales since Chinese clients are a huge part of NVIDIA's overall revenue from the data center segment. With "harsher" restrictions being imposed, Team Green has been cut off, and the new "workarounds" they devised didn't get the attention needed.
Moreover, competitors like AMD and Huawei are also moving towards closing the gap
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