Nvidia plans to triple GPU output in 2024
The demand for Nvidia’s H100 GPUs is sky-high, and the company plans to triple output to meet that want. The expansion of GPU production aligns with Nvidia’s position as a leader in both the AI and HPC markets, and could boost its revenue significantly if demand remains high.
The H100 GPUs are currently sold out well into 2024, prompting Nvidia to increase production by at least threefold. Expected shipments for 2024 range between 1.5 million and 2 million units, which is a massive leap from the anticipated 500,000 units this year.
The increased output will come with challenges, however, as the GH100 is a complex processor that’s difficult to manufacture in large volumes. Nvidia needs to secure a sufficient supply of 4N wafers from TSMC to triple output.
The GH100 also relies on HBM2E or HBM3 memory, which is currently in high demand. Nvidia will also need to secure enough HBM memory packages from companies like Micron, Samsung, and SK Hynix to meet demand.
In addition to the increased GPU output, Nvidia will also need to secure enough AI server output from its partners to accommodate the increased GPU supply.
Despite the challenges, this expansion of GPU production aligns with Nvidia’s position as a leader in the AI and HPC markets. The company’s CUDA framework, which is tailored for AI and HPC workloads, is crucial for applications that exclusively run on Nvidia compute GPUs.
Companies like Amazon Web Services and Google rely on Nvidia GPUs to meet the demand of their clients. However, increasing supply of Nvidia GPUs will also benefit companies that build AI servers, like Quanta and Foxconn.
Check out everything we know about the Nvidia GeForce GTX H100.
