The PC hardware market has been cancerous for months now, starting with the launch of NVIDIA’s latest RTX 3000 series graphics cards combined with two major console releases on top of additional CPU and GPU releases from main competitor, AMD.
Supply has been an absolute shit show of late, which isn’t at all helped from the piss poor yields of Samsung’s 8nm processing node or the hierarchy and importance next-gen consoles have with AMD’s TSMC 7nm orders.
Jensen Huang, CEO of NVIDIA previously assured his minions with the damage control that this wasn’t an issue that stemmed from supply but instead demand. This statement was already previously debunked by NVIDIA’s own CFO, Colette Kress.
Kress previously went on to say that supply would be constrained well into the new year having said this back in December last year:
“We do expect it probably to take a couple months for it to catch up to demand, but at this time, it is really difficult for us to quantify. So, we stay focused on trying to get our parts to the market for this very important holiday season. Each day things continue to improve. But before the end of the quarter, we will be able to provide some more information.”
— Colette Kress, NVIDIA CFO
But now it appears that supply for everyone’s favourite green suppositories just won’t be resolved anytime soon.
CFO, Colette Kress whilst speaking at the 19th annual J.P. Morgan Tech/Auto Forum Conference, when asked regarding an update on the RTX 3000 series supply situation, Kress mentioned that RTX Ampere supply is on a road of uncertainty admitting that current supply issues haven’t subsided and that it will continue that way until the end of the first quarter (Q1) of the year.
“So, supply does remain tight at this time. We expect the overall channel inventories, meaning the inventories that are with our AIC partners as well as in our e-tail and retail channels will likely remain lean throughout Q1.
Our overall capacity has not been able to keep up with that overall strong demand that we have seen. We’ve seen in terms of constraints, constraints really from the overall global surge of compute and the overall capacity, capacity that may be necessary for assembly and test and/or sub trades as well. But again, we remain focused on this and working each day to improve our overall supply situation.”
The stance being put onto the end of Q1 doesn’t really provide much enthusiasm as people would believe that Colette is actually referring to Q2 of the fiscal year which would begin in April however NVIDIA as a company has their corporate calendar completely out of whack. Already well into their fiscal year of 2021 NVIDIA themselves actually attribute May as the starting point of their second quarter financial reports. Meaning that the end of Q1 as described by NVIDIA would actually end in April. as this SEC filing also confirms.
Ouch. And just when people were hoping that by January that production would have either ramped up or our supply woes would’ve finally come to an end but it seems at the very least we three whole months left to go with limited supply.
I say this entirely from the heart as my own personal RX 6800 XT order is scheduled for sometime around March. I’ve also happened to order a Ryzen 9 5900X in early December and still have yet to receive that either.
Colette then answered another question regarding supply constraints being extended beyond April and how the quarterly profits and sales figures would be in comparison year-over-year.
“Yes. So, when you think about overall seasonality at this time, you’re right, it’s a little bit hard to look at when you are overall supply constrained. So, as we think about demand remaining very strong as we move from Q4 to Q1, seasonality is probably not a big factor this year as we are supply constrained. Our channel inventory is being lean and likely remaining lean though. We’ll focus in terms of how to think about that supply for our revenue as we think on Q1. We’ll provide more guidance on Q1 when we report earnings next month. But again, I don’t believe that seasonality will be a large factor this year.”
It certainly doesn’t look like we’ll be getting ample supply for anything related to PC hardware in the next few months. With NVIDIA having announced the RTX 3060 which will be paper launched at the end of February the company has also allegedly postponed the announcement of the 3080Ti leaving many customers out to dry with the unequipped 10GB RTX 3080.
Prices have sky rocked from such abysmal supply. If you’re lucky enough to even spot an RTX Ampere graphics card to buy, certainly don’t expect it to be anywhere close to its MSRP.