NVIDIA has begun signing contracts for the supply of electronic

NVIDIA has begun signing contracts for the supply of electronic components for the coming years

At its most recent quarterly conference, NVIDIA executives admitted they had committed $ 3.4 billion for the current quarter and previous quarter to pay for future component shipments through long-term partner agreements. The elimination of product shortages in the main areas of corporate activities will take place in the second half of the year, as the CFO emphasized again.

Image source: NVIDIA

Image source: NVIDIA

Colette Kress at the event Needham Growth Conference has repeatedly mentioned the second half of the year as a deficit overcoming period and has only recovered once, incorrectly naming the second half of the budget year rather than the calendar year. She also admitted that demand was actually too high for quick satisfaction, which was surprising for the company, but by the second half of the year most of the supply problems would be resolved.

According to an NVIDIA representative, the deficit problem manifests itself not only in the gaming segment, but also in the server segment – in the part of it that is associated with telecommunications solutions. Long-term contracts, which the company is now entering into more actively than before, are not aimed at the delivery of a certain type of product or a certain technical process, but rather to eliminate weak points in all types of activities. Some of these contracts will have an impact on NVIDIA’s operations in the coming quarters and some will affect NVIDIA’s operations in the next few years.

Last season of pre-Christmas sales saw strong demand for NVIDIA gaming solutions, especially laptops. The number of simultaneous users of the Steam system has reached a record 28 million people. Going forward, NVIDIA also expects good demand in the content creation device segment – studio-grade laptops and workstations, for example, can be useful for filling the metaverse.

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Johnson Smith

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