Skip to main content

Digital Trends may earn a commission when you buy through links on our site. Why trust us?

Nvidia says the GPU shortage will continue its rampage through 2022

Nvidia believes the global chip shortage won’t experience an improvement in the near future, with supply issues expected to continue throughout 2022.

The GPU giant’s CEO, Jensen Huang, shared his expectations on the outlook for next year’s inventory levels with Yahoo Finance. “I think that through the next year, demand is going to far exceed supply. We don’t have any magic bullets in navigating the supply chain,” he said.

RTX 3080 Ti in front of a window.
Image used with permission by copyright holder

Still, due to immense demand, the bottom lines for chip manufacturers have seen record highs. AMD, for example, recorded its best financial quarter ever in its third quarter of 2021.

Moving forward, Nvidia is seemingly also confident its financial performance will remain healthy.

Get your weekly teardown of the tech behind PC gaming
Check your inbox!

“We have the support of our suppliers. We’re fortunate that we’re multi-sourced and that our supply chain is diverse and our company is quite large so we have the support of a large ecosystem around us,” Huang added.

While Huang doesn’t envision an end to the chip shortage next year, AMD CEO Lisa Su has a more optimistic view; she expects the situation to improve during the second half of 2022. However, Intel believes a supply-demand balance won’t be achieved until 2023 at the earliest.

The chip shortage has been compounded by recent supply chain issues that have shown no signs of improvement. Multiple industries have been severely impacted by the lack of inventory for products, most notably GPUs and gaming consoles. For both categories, scalpers have exploited the current state of affairs, which has inevitably resulted in considerable price increases across the board.

To make matters worse, due to the record highs seen in cryptocurrency lately, GPUs have become an extremely valuable commodity for miners, making it even more difficult for the average consumer to get their hands on a graphics card. One individual in particular was subject to a yearlong wait for his order of an RTX 3080, which was only expedited after he sent a cake.

Elsewhere, because of the component shortages, Valve’s highly anticipated Steam Deck portable gaming console has been delayed by months. Sony, meanwhile, was reportedly forced to reduce its PlayStation 5 production targets due to manufacturing limitations.

We’re well over a year into the GPU shortage, and given the general consensus on when it will last until, gamers will have to wait yet another year before supply issues normalize.

Editors' Recommendations

Zak Islam
Former Digital Trends Contributor
Zak Islam was a freelance writer at Digital Trends covering the latest news in the technology world, particularly the…
GPUs just broke a 25-year-old record
Two RTX 4070 graphics cards sitting side by side.

The PC graphics card market witnessed notable growth in the fourth quarter of 2023, according to Jon Peddie Research. With shipments climbing by 6% to reach 76.2 million units, this surge marks a significant 24% increase year over year, representing the most substantial gain in over 25 years.

Projections indicate a continued upward trend, with an expected 3.6% annual growth rate from 2024 to 2026, potentially culminating in a total installed base of 5 billion units by the end of 2026, with discrete GPUs comprising 30% of the market.

Read more
Nvidia is the ‘GPU cartel,’ says former AMD Radeon manager
A hand holding the RTX 4090 GPU.

AMD's former senior vice president and general manager of Radeon has come out with some strong words against Nvidia. Scott Herkelman called Nvidia "the GPU cartel" in response to a story from the Wall Street Journal in which Nvidia's customers claim that it delays GPU shipments in retaliation for those customers shopping with other suppliers.

The accusation in question comes from Jonathan Ross, CEO of AI chip startup Groq, who said, "a lot of people that we meet with say that if Nvidia were to hear that we were meeting, they would disavow it. The problem is you have to pay Nvidia a year in advance, and you may get your hardware in a year, or it may take longer, and it's, 'Aw shucks, you're buying from someone else, and I guess it's going to take a little longer.'"

Read more
How Intel could win the GPU war this year
Intel Arc A580 graphics card on a pink background.

Intel faced an uphill climb with Arc Alchemist, and it looks like it might have another fight ahead with its next-gen Battlemage GPUs. The competition is always fierce, and AMD and Nvidia have big plans for the year ahead.

Despite the clouds that loom on the horizon, Intel might still surprise us with Battlemage -- in a good way. Here's where Intel Arc Battlemage is currently at, and why it might have a shot at being one of the best GPUs of the year.
Déjà vu
Prior to the release of Intel Arc Alchemist, one of the main complaints was that the general public was kept in the dark a lot of the time. The release date was pushed back more than once, and the information about the GPUs was fairly scarce compared to the constant hype we've all grown used to with Nvidia and AMD leaks.

Read more