Aug 26, 2022 17:00:00

NVIDIA's GPU shortage is resolved and surplus inventory is generated

The price of GPUs soared sharply in 2021 due to the closure of factories due to the pandemic of the new coronavirus infection and the demand for mining virtual currency. However, in January 2022, it was reported that the price of GPUs began to

decline, and in April 2022, it was reported that the price was approaching normal , indicating that the price gradually began to stabilize. increase. Under these circumstances, NVIDIA has revealed that there is surplus inventory in GPUs.

NVIDIA Corporation (NVDA) CEO Jensen Huang on Q2 2023 Results - Earnings Call Transcript | Seeking Alpha
https://seekingalpha.com/article/4536856-nvidia-corporation-nvda-ceo-jensen-huang-on-q2-2023-results-earnings-call-transcript

The GPU shortage is over. The GPU surplus has arrived! | Ars Technica
https://arstechnica.com/gadgets/2022/08/nvidias-excess-inventory-means-the-gpu-shortage-is-officially-a-gpu-surplus/

NVIDIA CEO Jen Sung Huang revealed on the second quarter earnings conference call on August 24, 2022, that the company's products have captured a very high level of demand in early 2022, and such excitement I told you that I was making a product for a certain market. However, demand dropped as we headed into the second quarter, and he said, 'By the time I realized it, I had excess inventories.' It was pointed out that sales from customers to consumers (sell-through) had increased by 70% since before the pandemic, and it was pointed out that there was an excess inventory compared to the depressed level.

Looking at the price transition graph of “GeForce RTX 3060 GAMING X 12G [PCIExp 12GB]” posted by Kakaku.com, it can be confirmed that the price has declined since March 2022.

However, since game demand is still strong, the strategy will be to adjust sales from manufacturers to customers (sell-in) below sell-through in the next few quarters, giving each sales channel an opportunity to correct inventory, CEO Huang said. I was.

Huang also said, 'In order to prepare for the next generation of products, we have established a program to determine the price of current products.' Technology media Ars Technica considers that ``this means that the company will lower the price of the current generation GPU and secure space for the next generation GPU,'' and the benefits of the price reduction will depend on NVIDIA's partner companies. I said it would come to consumers in some way.

Ars Technica also said, 'Demand for PCs and PC parts has declined almost across the board, partly due to recession concerns and as people bought large amounts of PC hardware early in the pandemic. GPU prices should continue to drop and we can expect at least some RTX 3000 series to stay long after the launch of the next-gen RTX 4000 series.Those looking for the best performance should wait for the next-gen launch. But for those who want to upgrade their older GPUs, it's the best time in years to switch to the current generation.'