Nvidia To Increase AI Shipments In Late 2024 As Supply Chain Issues Resolved

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Nvidia's AI Dominance Continues With Resolved Supply Chain!

Story Highlight
  • Nvidia is enhancing its AI GPU supply chain, leading to significant improvements.
  • The order backlog has decreased from 40% to single digits, indicating resolved supply issues.
  • Increased investments in AI clusters based on Blackwell servers are expected to boost the company’s sales and revenue.

A recent report indicates that Nvidia intends to dominate the AI GPU markets in the following quarters, given the significant improvement in the company’s supply chain.

According to DigiTimes, the tech giant has been addressing the supply chain by requiring suppliers to upgrade their production facilities or bring in new partners.

Why it matters: Nvidia is dominating the industry with its excellent artificial intelligence hardware. As such, these supply issues needed to be dealt with.

The Image Above Compares Monthly Revenue of AI Supply Chain Companies

As a result of these measures, the supply chain for AI GPUs has significantly improved over the last several quarters. According to the report, the supply will get significantly better with each quarter, and the market should have little to no order backlog of Blackwell GPUs.

The supply chain for AI servers encountered difficulties in the early part of the year when orders were placed but GPUs were unavailable. Shipments of customer orders didn’t start to rise until the end of the second quarter.

The supply chain projects that momentum will increase during the second half of the year as the shortage of H100 materials steadily improves. The order backlog numbers for this quarter have also improved and are now in the single digits.

This indicates that the problems have been mostly solved since the order backlog figures were as high as 40% in the middle of 2023.

As a result of the current push to acquire large AI clusters based on Blackwell servers, GPUs like the GB200 range are anticipated to see tremendous sales. This will play a significant role in Nvidia’s income stream.

Furthermore, the launch of consumer-based Blackwell GPUs is anticipated for 2024 or 2025, adding further revenue streams to an already successful company.

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