NVIDIA’s Explosive AI Growth Leads To Increased GPU Prices, Limited Supply & Massive Order Backlog

wccftech.com:

NVIDIA is seeing major growth within the AI segment and while that's great, the huge demand has created new problems such as higher GPU prices & limited chip supply.

During the pandemic days, NVIDIA had to deal with huge demand for gaming GPUs in two key segments, crypto, and client. With nothing else to do, demand for gaming hardware saw a big boost but the additional demand in the crypto segment which was quite active during the same period meant that there were limited GPUs to get hands-on, and those that were available were priced ridiculously high.

Now it's the entire opposite, since 2022, gaming GPUs and hardware has been available in great supply but the entire world is facing an economic crisis that has led to a major decline in the PC segment. Furthermore, rising inflation and manufacturing costs have pushed prices of GPUs by a lot and while NVIDIA, AMD, and Intel have tried their best to entice gamers, all recent GPUs have faced consumer backlash, mainly due to higher prices and not offering the same big performance leaps we saw in the previous generations. Furthermore, the crypto flood and older inventories are still there on retail shelves and are often seen as better value than the newer cards. That has also led to prices of existing launches falling below MSRP within a week of their launch.

So while gaming revenue has taken a major blow, AI has come as a savior for NVIDIA and pushed the company to unimaginable heights. ChatGPT, Generative AI, Stable Diffusion, these are some of the buzzwords that you all must be familiar with and NVIDIA has a key role to play in each of these technologies. NVIDIA GPUs are being used to tackle AI, ML & DNN challenges in various workloads and this is just the beginning.

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