Friday, February 26th 2021
NVIDIA Earned $5 Billion During a GPU "Shortage" Quarter and Expects to Do it Again in the Next One
NVIDIA's recently published Q4-2020 + Fiscal Year 2021 results show that the alleged "GPU shortage" has had no bearing on the company's financials, with the company raking in $5 billion in revenue, in the quarter ending on January 31, 2021. In its outlook for the following quarter (Q1 FY 2022), the company expects to make another $5.30 billion (± 2%). To its credit, NVIDIA has been maintaining that the shortage of graphics cards in the retail market are a result of demand vastly outstripping supply; than a problem with the supply in and of itself (such as yields of the new 8 nm "Ampere" GPUs). The numbers show that NVIDIA's output of GPUs is fairly normal, and the problem lies with the retail supply-chain.
Crypto-currency mining and scalping are the two biggest problems affecting the availability of graphics cards in the retail market. Surging prices of crypto-currencies, coupled with the latest generation "Ampere" and RDNA2 graphics architectures having sufficient performance/Watt to mine crypto-currencies at viable scale, mean that crypto-miners are able to pick up inventory of graphics cards at wholesale; with very little making it down to retailers. Scalping is another major factor. Those with sophisticated online shopping tools are able to buy large quantities of graphics cards the moment they're available online, so they could re-sell or auction them at highly marked up prices, for profit. NVIDIA started to address the problem of miners by introducing measures that make their upcoming graphics cards artificially slower at mining, affecting the economics of using GPUs; while the problem of scalping remains at large.
Source:
The Verge
Crypto-currency mining and scalping are the two biggest problems affecting the availability of graphics cards in the retail market. Surging prices of crypto-currencies, coupled with the latest generation "Ampere" and RDNA2 graphics architectures having sufficient performance/Watt to mine crypto-currencies at viable scale, mean that crypto-miners are able to pick up inventory of graphics cards at wholesale; with very little making it down to retailers. Scalping is another major factor. Those with sophisticated online shopping tools are able to buy large quantities of graphics cards the moment they're available online, so they could re-sell or auction them at highly marked up prices, for profit. NVIDIA started to address the problem of miners by introducing measures that make their upcoming graphics cards artificially slower at mining, affecting the economics of using GPUs; while the problem of scalping remains at large.
49 Comments on NVIDIA Earned $5 Billion During a GPU "Shortage" Quarter and Expects to Do it Again in the Next One
Companies care about nothing other than profit, they are not your friend. Not sure why you're surprised lol
Yeah waiting for the same "Give a used miners card new gaming life" p.r. campaign from nvidia lol
Then the mining craze collapses again because it will and suddenly nvidia is a company making video cards no one wants because they're already Xbox or PS invested. No, they want gamers to want GPU's and gamers have to think they can someday afford GPU's to want them enough to pine and plan to get them. I think Nvidia is as annoyed about mining as the gamers are. They know where their bread is buttered.
It's the AIB's and the stores that think they can scalp the scalpers. They're the ones that normally don't make tons of money off video cards and suddenly see a chance to blame anyone and everyone except themselves for the price hikes. Notice Asus? "It's the Trump Tariffs, but eh... also silicon shortages. Yeah. Even if those tariffs are gone? Don't expect pricing to change. Y'know? Because silicon! Yeah!" I kinda don't blame them because if ANYONE is that stupid and will pay twice, three times the price of a card to game on them, then perhaps PC gaming really is pricing most gamers out of doing it.
To me, the danger lies in leaving the gaming industry in a world of hurt if gamers simply can't buy the gear to play games. AMD will win if people just move to consoles, so NVIDIA needs to watch themselves. GPUs don't live forever, but I bet they just hope gamers can get by on what they have until the next mining bubble bursts.
Truth being told, the card already half paid for itself in Ethereum.
It should read Nvidia earned $5 Billion in GPU mining boom.
There is no shortage, sales are booming.
Both OEMs, gamers and the pesky miners are not getting all the products they want. But this GPU shortage has lasted since at least early last year, long before the mining boom(perhaps 5 years, depending how you measure). The mining boom just made it worse. And despite all the shops being sold out these days, large quantities are shipping every month. If you're lucky, you can get one within a week, if you're unlucky >3 months…
You are right about the underlying problem of foundry capacity bottlenecking the supply, and there is no easy fix to that, to solve this they would have to plan this >5 years ago, and that's even assuming they could have gotten more lithography equipment (which is unlikely).
But there is one partial solution though, if Nvidia and AMD had booked more capacity at the previous nodes to make mid-range products (like RTX 3060). This is hard to fix now that this capacity is sold to others, but I hope they learn from this and book some "reserve capacity" for the next years.
Also, you should look up what literally actually means ;)How are they taking advantage of the situation? The inflated prices only benefits those further down the supply chain, not the makers themselves. I believe all three would love to sell more products.
The old back door sells are winning
Are manufactures accepting bitcoin too :cool:
AMD isn`t even make them and the dies goes directly to the consoles (contracts with Sony & Microsoft) and the cpu`s.
And even when AMD would make enough gpu`s.......1 BIG plus is that the 6000 series from AMD arent good at mining.
Go and look some mining video`s on You Tube.........There is a reason why you do NOT see any 6000 series gpu`s in mining farms.
Crypto IS heading for a crash tho, so expect a lot of panic in the markets in the 2nd half of the year. COVID-enforced game delays also mean that we don't really have that big of a reason to upgrade.
And for the love of God/Satan or whatever you like or don't like, please don't believe everything you read. These big companies are still selling their products to other people (AI? just one example Nvidia A100, just another example Nvidia Geforce NOW partners), and i am not talking about only miners, some of those products use the same Vram, some use same silicons and more. If a big company says "We have Clean Water shortage, it will affect the production, there was not enough rain here this year..." or "Sorry there was a power cut for 2 hours, prices may go UP" , just don't believe them, you know who they are. At Vram shortage why they released a 12gb version of a crap gpu? Why mining GPUs? And it is not only Nvidia, but also AMD and more... Open your eyes.
It might happen. But I don't expect any "fast" movements downward. With that being said: with GBTC selling at a severe discount, it shows that the (more mainstream) Wall Street players have grown weary of BTC and are selling off severely (GBTC normally trades at a severe 10%+ premium). Seeing GBTC at such a discount suggests that the general market is wanting to sell at a pretty severe rate.
All in all: I'm seeing mixed-messages. I'm not expecting any major route yet. Maybe a dead-cat bounce or two still. With that being said: barriers have begun to form at $50,000: it seems like the optimists are beginning to look for the exists. A few days ago, there were no barriers at all all the way to $60k. But without much market depth in the below $50k region, the price could very easily jump to near $50k (but probably not over $50k) again this week.
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So IMO, its looking like BTC will stabilize here, at $45k and stay below $50k IMO. At least, for the near future. Lets see how accurate I am, lol...
I'll be surprised if BTC collapses this week. As much as I want a collapse so that GPU prices return to normal... I'm just not seeing any technical analysis that points to a BTC collapse IMO.
~$50 Million USD to move the price from $43k (current) to $50kish. In contrast, you need ~$50 Million to move the price from $43k to $42k.
A rout may happen, but first those MASSIVE supports in the $10s of millions need to be erradicated. Literally hundreds-of-millions of $$$ of BTC need to be sold to drop below $40k right now. There's tons of people who are aiming to "buy the dip" and support BTC at $42,000.
This announcement from the NY Attorney General seemed to have caused a $10,000 dip in BTC's price alone a few days ago. Basically proving that Bitfinex and Tether were working together (erm... I assume everyone knew that), as well as formally declaring it illegal for Bitfinex / Tether to interact with New Yorkers.
This will have a terrible ending imo. I hope that the crypto speculation craze didn't get too many working folks.
The miners and scalpers use bots to check when a store has any cards in stock and grabs them very quickly so that's why the stores say out of stock. As mentioned in the article Nvidia is raking in money from sales. Scalpers have gone to the extreme on prices and still they are selling the cards.
Another factor is Jensen Huang said a while back that PCBs and the components that go on the cards are in short supply and then there's the Pandemic which causes transportation issues and because a lot of people have been quarantined at home and are not able to work so they are buying cards to game on for entertainment.