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NVIDIA: Supply chain on track to recover to 70-80 percent by end-of-month

Posted on Wednesday, March 25 2020 @ 11:47:01 CET by


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NVIDIA revealed that its supply chain is starting to recover from the coronavirus pandemic. Yesterday, the company's managers shed some light about the current business situation during a fireside chat.

While the coronavirus is now hitting Europe and the US hard, things seem to be improving in Asia. Chief Financial Officer Colette Kress said laptop demand is picking up again, particularly in China. NVIDIA also said that supply chains are expected to have recovered 70-80 percent by the end of this quarter. Presumably, the company is talking about the current calendar quarter, and not its fiscal quarter (which does not follow the calendar quarters).

However, NVIDIA did stress that most of the recovery is focused on desktop PC products. The laptop supply chain remains a problem:
NVIDIA's supply-side for these products is also improving, but with a caveat that should hinder its ability to capture the aforementioned demand surge. The company today reports that supply chains will have recovered in the range of 70% to 80% at the end of this quarter, and the bulk of this recovery will be focused on the personal computing segment of its revenue.

So naturally, once NVIDIA and retailers run out of inventory for mobility products, and the mobility (laptop) supply chain does not recover along the lines of the personal computing supply chain, the company will face headwinds in catering to the demand surge from COVID-19.
In the short term, NVIDIA does not expect issues for the laptop market though due to an inventory buildup that occured before the Chinese New Year.



 



 

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