Nvidia wants to drastically increase the production of its GPUs. 2024 is projected to roll off three times as many chips as this year, potentially having a huge impact on sales.

Nvidia wants to roll three times as many GPUs off the assembly line by 2024. This is to meet the great demand for H100, A100 and other accelerators. These chips are currently selling like hotcakes thanks to the companies’ insatiable hunger for AI. The chips from Nvidia are the standard for training and inference and are currently unparalleled in the upper price segment.

Nvidia shouldn’t worry about over-producing its chips. The most powerful, the Nvidia H100, is sold out until sometime in 2024. Nvidia currently produces about half a million H100 chips per year, but it is expected to increase to one and a half or even two million.

bottlenecks

However, the GPU specialist does not have its own factories. For production, the company relies on partners, especially TSMC, but also on suppliers. For example, enough waffles have to be bought in order to bake the chips, and the production of these is also limited. In addition, Nvidia needs to find enough HBM memory. So many bottlenecks have to be eliminated before production can really be increased drastically.

If that succeeds, Nvidia can look forward to a good fiscal year. We previously wrote that Nvidia makes tens of thousands of euros per H100 chip sold. Even if the production is slightly more expensive, the profit per accelerator is immense. A tripling of the volume would catapult Nvidia’s sales and profits to unprecedented heights.