NVIDIA’s AI Supply Chain Has Recovered Drastically, Shipments To Flood Markets By 2H 2024
NVIDIA's AI GPU supply chain has recovered drastically, & a new report suggests that the company plans to flood the markets in upcoming quarters.
NVIDIA's AI GPUs, Including Hopper & Blackwell Generations, Expected To Be In Continuous Supply For The Upcoming Quarters
DigiTimes reports that the AI GPU supply chain has seen massive improvements within the past few quarters, credit to the efforts of NVIDIA in upscaling the supply chain, whether it is through adding in new partners or demanding suppliers to enhance existing production facilities. The situation was completely different at the start of 2023 when the markets were desperate to acquire NVIDIA's AI accelerators, particularly the H100s, which sparked the initiation of the AI fiasco we discussed earlier.
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However, with the upcoming architectures such as NVIDIA's Blackwell, the market is expected to receive a "flood of GPUs", simply due to the momentum established by the involved suppliers. The report suggests that the supply will massively improve with each passing quarter, and by the time of Blackwell's release, the markets can expect little to zero order backlog.
The order backlog figures for this quarter have dropped to single digits, compared to when it was up to 40% during the middle of 2023, showing that the markets have indeed battled through the problem.
Well, it looks like NVIDIA's Blackwell AI products are expected to be a hit in the markets, and given that the architecture is expected to bag in over a million orders just for the B200 AI GPU alone, it surely would require a robust supply chain which Team Green has achieved successfully. However, this time, AI servers are going to play a massive role in NVIDIA's revenue stream since tech firms are now focusing on building large-scale AI clusters, in which Blackwell servers, such as the GB200 lineup, are expected to witness huge sales traction.
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