Is Nvidia even able to capture a proportionately significant amount of revenue from increases in demand for GPU cycles? As the article describes, there are real bottlenecks, but how does this play out? My assumption is that Nvidia doesn't have proportional pricing power for some reason. If demand increases 10x, they can't raise prices to the same extent (correct me if I'm wrong).
How would that even play out then? Is everyone in the world simply stuck waiting for Nvidia's capacity to meet demand?
There is obviously a huge incentive now to be competitive here, but is it realistic that anyone else might meaningfully meet demand before Nvidia can?
A a ballpark you can guess ~100x the margin of gaming GPUs since the transistor counts and architecture are similar enough to high end gaming GPUs that sell for a fraction of the price and the extra RAM isn't going to close that gap.
When you have 100x the margin on a product you only need to sell 1% as many to almost double profit. 10% would be more than 10x profit.
How would that even play out then? Is everyone in the world simply stuck waiting for Nvidia's capacity to meet demand?
There is obviously a huge incentive now to be competitive here, but is it realistic that anyone else might meaningfully meet demand before Nvidia can?