The GPU shortage is over. The GPU surplus has arrived!:
How quickly things change: A year ago, it was nearly impossible to buy a GeForce GPU for its intended retail price. Now, the company has the opposite problem. Nvidia CEO Jensen Huang said during the company's Q2 2023 earnings call yesterday that the company is dealing with "excess inventory" of RTX 3000-series GPUs ahead of its next-gen RTX 4000 series release later this year.
To deal with this, according to Huang, Nvidia will reduce the number of GPUs it sells to manufacturers of graphics cards and laptops so that those manufacturers can clear out their existing inventory. Huang also says Nvidia has "instituted programs to price position our current products to prepare for next-generation products." When translated from C-suite to English, this means the company will be cutting the prices of current-generation GPUs to make more room for next-generation ones. Those price cuts should theoretically be passed along to consumers somehow, though that will be up to Nvidia's partners.
[...] Nvidia announced earlier this month that it would be missing its quarterly projections by $1.4 billion, mainly due to decreased demand for its gaming GPUs. Huang said that "sell-through" of GPUs, or the number of cards being sold to users, had still "increased 70 percent since pre-COVID," though the company still expects year-over-year revenue from GPUs to decline next quarter.
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The party is over for Nvidia as crypto and gaming GPU demand is down:
Nvidia on Wednesday announced its financial results for the second quarter of its fiscal year 2023. The results were a mixed bag as its client PC businesses suffered declines, but its automotive and data center businesses thrived.
Nvidia's gaming, professional graphics, mining, and OEM business segments were down significantly both sequentially and annually, which is why it had to warn investors that it expects slow sales of gaming and ProViz graphics products to persist for a while. Meanwhile, the company said that it plans to talk about its next-generation Ada Lovelace architecture next month but never revealed when actual GeForce RTX 40-series graphics boards will be available.
By contrast, Nvidia's data center and automotive hardware shipments were up significantly compared to the same quarter a year ago. They will be up again in Q3 FY2023 now that the company's Hopper H100 compute GPUs are in total production and ready to ship.
[...] During its second quarter of fiscal 2023, Nvidia encountered multiple challenges, including macroeconomic conditions (inflation and uncertainty among consumers), high inventory levels in the channel (as the company aggressively sold its graphics cards in prior quarters), softening demand from the end user (both because gamers are expecting Ada Lovelace to launch shortly and because of uncertainties), inventory corrections by partners, and lowering prices of graphics cards as a result of softening demand as well as increased supply by competition.
[...] It should be noted that Nvidia's gaming revenue in Q2 was still significantly higher when compared to $1.654 billion in the second quarter of the company's FY2021 (~calendar Q2 2020). It indicates that the chip designer benefited greatly from increased demand for discrete GPUs for gaming PCs, increased prices of standalone graphics cards, and the crypto mining craze.
(Score: 3, Insightful) by Opportunist on Saturday August 27 2022, @10:13AM (1 child)
It may well be that it is coming soon, but so far I can't see the prices nosedive with the vendors.
(Score: 3, Interesting) by RamiK on Saturday August 27 2022, @11:40AM
And you won't. nVidia has good liquidity ratios and if you look at AMD's RX 6000 positive sales, it's pretty clear nVidia would be better off repurposing their fab quotas to lower end cards while continuing to sell the high-end chips at high-end price points.
compiling...
(Score: 5, Touché) by Captival on Saturday August 27 2022, @01:03PM (2 children)
That means it's only $1000 for a nice high end video card, instead of $2000! What a totally reasonable price to pay. Thank you Nvidia.
(Score: 0, Flamebait) by Anonymous Coward on Saturday August 27 2022, @05:33PM
I wish there was a moderation for "whiny bitch"
(Score: 1) by Runaway1956 on Saturday August 27 2022, @07:08PM
I don't like that kind of pricing either, but I think it's probably somewhere close to reasonable. Could they sell their top end cards for $500? Probably. Should they? Well, yeah, I want them to, but they do have obligations to investors, and they want to make a profit of their own.
I've been fairly happy paying ~500 for a second tier card, I'll stay happy to do that. I purchased my 2070 Super for ~$500, then watched the prices go up to the $2000 neighborhood. That was $2000 for second tier, the first tier was selling for nearly $3000.
Let's be a little bit grateful that they aren't raping us so hard, alright?
Abortion is the number one killed of children in the United States.
(Score: 4, Interesting) by sonamchauhan on Saturday August 27 2022, @03:31PM (2 children)
The market for discrete cards is shrinking. Many work and personal customers are upgrading desktops to laptops.
Why not create new markets?
For instance, this Copilot clone *requires* an Nvidia GPU: https://github.com/moyix/fauxpilot [github.com]
NVIDIA could ceate a software/hardware/GPU package, integrated with USB-C (not a breakout box for desktop GPU, but one using a real mobile GPU). A coder could use it to get Copilot like functionality locally. Alternatively, attach it to a laptop or desktop and drive a multi monitor UHD gaming-capable setup. Or, plugged into a USB-C charger, it could be a standalone home based media server/backup server. Or drive the TV.
(Score: 0) by Anonymous Coward on Saturday August 27 2022, @03:40PM (1 child)
External GPU over Thunderbolt/USB4 is already a thing. The only thing new you want is a weaker GPU inside it that is not user replaceable?
TV does not need a beefy GPU. Internal hardware or a small ARM box is fine. Nvidia is in that market with the Shield TV products, which does have a more powerful mobile-class GPU than the competition that can let it do some gaming. It can probably be the only media server you need if you set it up just right.
(Score: 2) by sonamchauhan on Thursday September 01 2022, @11:37AM
.
:) Hahaha... close, but not the only thing.
I also want it cheap, small and low-power. Say, $200, bus-powered and the size of a few biscuits stacked together. Not the breadbox-like eGPU enclosures currently on the market (externally-powered boxes that accept full size graphics cards).
And -- equipped with an ARM CPU and WiFi. So it can be a USB-powered media centre, backup or PiHole appliance. Or the toggle of a switch, work as an external GPU driving a monitor or FauxPilot AI server.
All from a little box dangling at the end of a USB-C cable.
(Score: 2) by HammeredGlass on Saturday August 27 2022, @03:42PM (2 children)
DON'T BUY SHIT! WAIT FOR THEM TO SELL AT OUR PRICE!
(Score: 3, Informative) by takyon on Saturday August 27 2022, @04:55PM (1 child)
AMD & NVIDIA Partners Ready To Offer More Brutal Price Cuts On GPUs In September, Current Cuts Not Moving Inventory As Expected [wccftech.com]
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 2) by HammeredGlass on Saturday August 27 2022, @07:30PM
Never trust wccftech
(Score: 2, Insightful) by Anonymous Coward on Saturday August 27 2022, @07:04PM (2 children)
Imagine what all that wafer and packaging capacity could have been used for.
The world fscked over by crypto
(Score: 1, Interesting) by Anonymous Coward on Saturday August 27 2022, @09:03PM
The GPUs went to the used market, often in good condition because they get undervolted for efficiency.
(Score: 2) by richtopia on Monday August 29 2022, @03:49PM
I imagine those chips would have gone into gaming GPUs and rendered virtual worlds. I believe not much of value was lost.