NVIDIA : Supplying AI GPUs on massive upswing in the market in 2024 | Generative ai in Finance and Banking | Generative ai Chatgpt | Mckinsey Generative ai Report pdf | Turtles AI

NVIDIA : GPU AI SUPPLY CHAIN RECOVERS, MARKET TO BE FLOODED BY SECOND HALF OF 2024

NVIDIA has announced a remarkable recovery in its AI GPU supply chain by predicting massive availability in the coming quarters. A DigiTimes report highlights that NVIDIA’s efforts to strengthen the supply chain have led to significant improvements.

In early 2023, demand for AI accelerators, particularly the H100s, was sky-high, causing a significant shortage of inventory. However, the situation has drastically changed as a result of partner expansion and optimization of existing manufacturing capabilities.

With the advent of new architectures, such as NVIDIA’s Blackwell generation, a significant influx of GPUs is expected in the market. This continuous improvement in supply is expected to minimize delivery delays by the time the new Blackwell products are released. 

Currently, order delays have dropped to a single-digit percentage, down from a peak of 40 percent in mid-2023. Estimates suggest that demand for the Blackwell B200 GPU will exceed one million units, necessitating the highly efficient supply chain that NVIDIA has now established.

AI servers will be a key component of NVIDIA’s revenue, with large AI clusters becoming increasingly popular. Blackwell’s GB200 line, in particular, is expected to see significant commercial success.

This development represents the "second phase" of the AI euphoria for NVIDIA, with Blackwell set to become one of the company’s most successful products.

Key Points:

1. NVIDIA’s AI GPU supply chain has seen a remarkable recovery, with massive availability expected in the second half of 2024.

2. NVIDIA’s Blackwell generation promises to minimize delivery delays, with orders expected for more than one million units of the B200 GPU.

3. Expansion of partners and optimization of manufacturing capabilities have contributed significantly to solving previous inventory shortages.

4. AI servers, particularly Blackwell’s GB200 line, will be critical to NVIDIA’s revenue, with growing demand for large AI clusters.