Chip Crunch a ‘Wake-Up Call’ Not to Take Supply Chain ‘for Granted’: Nvidia

Nvidia’s gaming revenue of $3.2 billion was up 42% from a year earlier in fiscal Q3 ended Oct. 31, said Chief Financial Officer Colette Kress on a Wednesday call. “Demand was strong across the board” as Nvidia continues to increase supply of desktop graphics processing units, she said. “We believe channel inventories remain low.” Nvidia has secured “guaranteed supply, very large amounts of it,” from the world’s top packaging and testing companies, said CEO Jensen Huang. “This whole last year was a wake-up call for everybody to be much more mindful about not taking this supply chain for granted.” Nvidia made a $1.6 billion payment this quarter on a total long-term capacity agreement of about $3.4 billion, said Kress. “We still have more payments to make and we will likely continue to be purchasing longer-term to support our growth.”