How fast things change: A year ago, it was almost impossible to buy a GeForce GPU for the anticipated retail price. Now the company has the opposite problem. Jensen Huang, CEO of Nvidia he said yesterday during the company’s second-quarter 2023 earnings call that the company is dealing with an “excess inventory” of RTX 3000-series GPUs ahead of the launch of the next-gen RTX 4000-series later this year.
To deal with this, according to Huang, Nvidia will reduce the number of GPUs it sells to graphics card and laptop manufacturers so those manufacturers can liquidate their existing inventory. Huang also says that Nvidia has “instituted programs to position the price of our current products to prepare them for next-generation products.” When translated from C-suite to English, this means that the company will lower the prices of current-gen GPUs to make more room for next-gen ones. In theory, those price cuts should be passed on to consumers in some way, though that will be up to Nvidia’s partners.
Nvidia announced earlier this month that it would miss its quarterly projections by $1.4 billion, mainly due to declining demand for its gaming GPUs. Huang said GPU “out-selling,” or the number of cards sold to users, had still “increased 70 percent from pre-COVID,” though the company still expects annual GPU revenue to grow. decline next quarter. .
Read the remaining 2 paragraphs | Comments