Nvidia: Our GPU Inventories Are Nearly Back To Normal
In another sign the GPU shortage has abated, Nvidia is reporting the company’s product inventories are almost back to normal.
“Channel inventory has nearly normalized and we expect it to remain around these levels in (fiscal) Q2,” said the company’s CFO Colette Kress in a Wednesday earnings call.
The improved inventories occur on Nvidia’s ongoing investments to boost its manufacturing capacity. The company’s PC graphics cards are now much easier to find in stock at major retailers, although the product pricing can still be annoyingly high.
In addition, the value of many cryptocurrencies has taken a dive in the last few weeks, which is likely leading to waning demand for GPUs for cryptocurrency mining.
In Nvidia’s case, the company is indicating its own dedicated GPUs for cryptocurrency mining, dubbed CMP, are attracting little business. During fiscal Q1 — which ended May 1st before the most recent crypto-bust— Kress said the revenue from the CMP business was “nominal” compared with $155 million from a year ago.
One factor that might be also decreasing demand for GPUs among miners is Ethereum’s transition to Proof-of-Stake, which is scheduled to occur as soon as August. Once this transition is complete, Ethereum will no longer depend on GPU-based mining to maintain its blockchain.
In her own investor letter, Kress noted: “Volatility in the cryptocurrency market —such as the recent declines in cryptocurrency prices or changes in method of verifying transactions, including proof of work or proof of stake— can impact demand for our products.”
Despite the falling cryptocurrency mining demand, PC gamers are still buying up the company’s GPUs. During fiscal Q1, Nvidia’s gaming business raked in a record $3.6 billion in
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