September 24, 2022

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NVIDIA produced too many graphics cards and may start inventory clearance

3 min read

NVIDIA produced too many graphics cards and may start inventory clearance



 

NVIDIA produced too many graphics cards and may start inventory clearance. 


NVIDIA, like Intel, was hit hard by the notable decline in PC sales this quarter.

The question lingering in investors’ minds is: Why did the multi-billion dollar growth just disappear?

 

 


In the second quarter report, the poor performance will be annoying for NVIDIA, but it may be good news for gamers.

Because in order to appease these investors, NVIDIA may take some actions that are beneficial to players: cut prices to clear inventory.

 

First, of course, discounts.

NVIDIA CEO Jen-Hsun Huang confirmed what the media had been speculating for the past few months: NVIDIA actually makes too many gaming GPUs, and now it appears that it must be forced to sell them at lower prices.

 

“We found ourselves with excess inventory. Our strategy is to sell below the current sales level in the market, thereby creating sales opportunities for the channel,” Huang said. Product re-pricing and preparation for our next generation.”

 

This doesn’t necessarily mean that consumers will immediately see great deals on graphics cards or gaming laptops, as the final price depends on partners and retailers.

However, for the foreseeable future, we can see these channels clearing inventory, whether in promotions, price cuts across the board, etc. And the price of some graphics cards will drop significantly, and you won’t see 2-3 times the price on eBay again.

 

Second, CFO Collette Kress interestingly hinted that NVIDIA might be taking a completely different approach to boosting its gaming revenue. NVIDIA “plans to enter a new market segment with our gaming technology,” she said on the conference call.

 

Foreign media The Verge believes that the first thing that comes to mind is the handheld. The latest generation of high-performance handheld gaming PCs are currently dominated by AMD processors. In the future, NVIDIA may create a game-centric metaverse.

 



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