Nvidia had previously stated that the global shortage scenario chips would last until 2021. Unfortunately, the situation in 2022 is unlikely to be much different. At least, that’s what the company’s CEO, Jensen Huang, predicts, who also admits Another issue is that Nvidia’s acquisition of Arm is likely to take longer than anticipated.
Huang made the comments during a conference call on Wednesday (18) to discuss Nvidia’s financial results for the previous fiscal quarter. Despite the chip shortage, the company generated a record $6.51 billion in revenue during the period, a figure that represents a 68 percent year-over-year increase.
While the most recent results are intriguing for investors, the scarcity scenario casts some doubt on the future. As a result, it’s not surprising that the topic came up during the presentation.
Huang didn’t go into specifics, but said, “I would expect to find an environment of limited supply [of chips] for the majority of the next year, that’s my guess at the moment.”
In recent months, the company has been able to maintain some supply consistency in the United States and Europe, which has resulted in a slight drop in the prices of its GPUs in those markets.
As a result, the situation for Nvidia isn’t quite as dire. This impression is reinforced by Huang’s statement that chip supply commitments for the coming months will be honored.
The problem, according to Nvidia’s CEO, is that demand for chips will continue to outstrip supply next year. This means that finding reasonably priced branded GPUs will not be impossible, but it will take some effort.
And the purchase of Arm?
Nvidia announced the acquisition of Arm in September 2020, with regulators expected to approve the deal within 18 months. Jensen Huang, however, admitted for the first time that this deadline could be extrapolated.
“We are expanding the schedule because our discussions with regulators are taking longer than expected,” the executive told the Financial Times.
This isn’t surprising. The acquisition has been hampered by several issues. The United Kingdom, where Arm’s headquarters are located, is looking into whether the deal could jeopardize national security.
Another source of contention is China, which is concerned that the transaction will concentrate even more technology in the hands of the US.
Despite the challenges, Huang expressed confidence that the deal would eventually be approved by regulators.
Source: The Verge, Videocardz
