Nvidia has made too many RTX 3000 graphics cards, and now it has to reduce its stock before the launch of its new next-generation GPUs, Lovelace. For this, it will have to lower its price, according to The Verge, although it is unknown how far the sales will go.
These statements are based on comments made by the Nvidia CEO Jensen Huang, at a meeting with shareholders following the release of the company’s second fiscal quarter results. In this meeting, the manager offered imprecise messages on what to do to end the excess stock they have of Ampere GPUs.
Huang made no bones about confirming the stock status of the RTX 3000 GPUs, simply stating that they had run into each other «with excess inventory. our strategy is to sell below current market sell-off levels to give the channel a chance to correct«. Huang also added that they have launched “programs with their partners to position the product in terms of price in the channel, in preparation for the next generation.”
Nvidia has already announced rebates on higher-end Ampere graphics cards, and we’ve seen prices drop on RTX 3000 GPUs not too long ago. It seems, therefore, that the drop in prices of these cards will continue, as expected.
However, it is unknown how far the discounts will go, since the company is already evaluating other options to give them outlets. For example, offering them for sale to data centers, since according to Nvidia, «the supply of GPUs is suffering from a shortage in the cloud«.
This may also lead to Nvidia deciding to change its strategy for the release of its upcoming RTX 4000 series GPUs. So Nvidia, instead of releasing the RTX 4090, which is rumored to be the first model to come out of the series, followed by the RTX 4080 and 4070 models with a month between each release, opt to wait longer between each release. It could even delay the release of the RTX 4080 and 4070 models until 2023, although at the moment there is nothing confirmed.
On the other hand, the Nvidia CFO Collette Kressappeared at the meeting to point out that Nvidia is going to target a “new market segment» with its technology for gamingwithout giving further clues as to which segment he was referring to or what technology or product he was giving hints about.
