AI Demand Drives Nvidia GPU Prices Up, Limited Supply & Massive Order Backlog

In recent months, a fervor has swept across the globe, spearheaded by artificial intelligence tools such as ChatGPT, which has substantially boosted the demand for data center GPUs like NVIDIA’s A100 and H100. According to Wccftech, this sudden surge in demand has given rise to new predicaments, such as escalating GPU prices and constricted supply.

Currently, NVIDIA is refreshing its client product line, supplanting old products with a new generation of GPUs based on the Ada Lovelace architecture, which is already penetrating mainstream market segments. However, due to a combination of global factors such as economic recession, diminishing consumer demand, and inflation, the cost of new products has risen, and shipments are obstructed. Even though the gaming business has been hit hard, artificial intelligence has become NVIDIA’s savior, propelling it to new heights.

The training of multimodal large-scale language models necessitates robust computational support, leading to an explosive increase in market demand for data center GPUs. This has forced the Taiwan Semiconductor Manufacturing Company to expand its advanced packaging capacity and urgently order new packaging equipment to fulfill this year’s order demand. Previous reports have indicated that the delivery cycle for high-performance computing GPUs has extended from the past three months to six months, with longer waits possible in some cases. This has also caused NVIDIA’s computation card prices on the market to skyrocket, with the H100 exceeding $35,000.

The latest report suggests that next year the market demand for NVIDIA data center GPUs will be even greater. Considering the current market trends and the continuous growth of orders, the longest wait for new orders could be up to a year. Concurrently, as more and more tech companies place orders, NVIDIA will prioritize the orders of larger clients, aiming to further enhance profits before competitors seize market share.