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NVIDIA says video card market will return to normal very soon

NVIDIA says video card market will return to normal very soon

CFO Colette Kress said at a quarterly earnings call yesterday that retail finished goods inventories in the first fiscal quarter are almost at normal levels, and will remain so in the second quarter.
The improved availability of graphics cards has been helped by a decline in miner activity and NVIDIA's own efforts to combat shortages.Source image: Getty ImagesJust recall that the book value of inventory at the end of April reached $3.16 billion compared to $1.99 billion a year earlier to appreciate the extent of the company's efforts to reduce the shortage of graphics processors.
NVIDIA's financial liabilities to component suppliers reached $9.59 billion last quarter compared to $3.46 billion a year earlier, largely due to an increase in advance payments under long-term agreements from $1.84 billion to $3.06 billion.According to Colette Kress, the observed decrease in the speed of Ethereum mining network performance now may indicate lower activity by miners using video cards.
It is known that in August the participants of the process may switch to the \"proof of stake\" model, which does not require the previous computing resources for the cryptocurrency ecosystem to function.
If we talk about the supply of gas pedals CMP professional miners, in the first quarter, they were so modest that NVIDIA representatives have decided not even to name specific amounts of core revenue, stating only that it is far from the $155 million that was received a year ago.Demand for graphics cards may temporarily decrease due to lockdowns in China, the events in Ukraine and the approaching announcement of the new generation graphics solutions, which is scheduled for the second half of the year.
All of these factors were also mentioned by NVIDIA CFO in her comments, explaining the reasons for the rebalancing of the gaming graphics cards market.
At the same time, company founder Jensen Huang said at the quarterly conference that \"the fundamental dynamics of the gaming industry remain stable.\" According to him, over the past two years the audience of PC gamers has increased by 100 million people.NVIDIA representatives were not shy during the quarterly event several times to say that the company's customers are still limited in their abilities by the continuing shortage of server components.
There will also be a gradual improvement in the availability of network solutions by the end of this year.
It is in the networking segment that NVIDIA feels the problems with the supply of components the strongest, but the company is making enough efforts to systematically eliminate them.

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