With an excess of GPU inventory collecting dust in retailer warehouses, it seems that Nvidia could opt to release its next-gen boards later than originally planned.
Reputable technology insider Moore’s Law Is Dead has heard from his retail sources that due to an influx of stock for RTX 30-series cards, its successor, the RTX 40-series, could be delayed to December, 2022.
In his video that detailed testimonies pertaining to the oversupply of Nvidia cards, one source stated that they’ve been “forced to swallow tens of thousands of high-end Ampere cards we don’t want.”
The anonymous store also stressed that it may not even generate a profit on these products as it’s “not sure we can sell above what we paid.”
Another source told Moore’s Law Is Dead that it has a warehouse with an ample amount of low-end, last-gen Turing GPUs they paid between $200 to $300 to acquire depending on the SKU. However, with the drop in demand following the end to the GPU shortage, it’s “getting real desperate to move them.”
The YouTuber was also told that a DigiTimes report — detailing how Nvidia is now reportedly asking TSMC to cut back its production for the RTX 40-series due to the sheer amount of excess Ampere stock it is holding — is indeed true.
Finally, when taking all the aforementioned information into account, it’s no surprise that a separate source added that the RTX 4000 range may not launch “with real volume” until November or December.
So, why is there an excessive amount of stock sitting idly in warehouses for RTX 30 GPUs? After all, before 2022, the majority of the cards from this range were almost impossible to obtain at their manufacturer’s suggested retail price (MSRP). And now individuals and retailers can’t seem to get rid of them.
Well, both crypto miners and scalpers were predominately behind skyrocketing costs for Team Green boards. Due to the recent spectacular crash of the cryptocurrency market, a lot of these products are now widely available on multiple 3rd-party marketplaces like eBay and the like at affordable price points.
Similarly, scalpers and Nvidia board partners are desperately trying to get rid of stock, hoping to at least to break even — a massive contrast indeed from the days they made millions and even billions from inflated price points. It even got to the point where huge corporations were apparently giving out bonuses because of the amount of money it was making from selling crypto-mining GPUs.
In any case, it’s important to highlight how the launch period for AMD’s Radeon 7000-series could factor into when Nvidia decides to release its own boards.
“There is a cap on how long Nvidia can realistically wait to launch [the RTX 40-series], said Moore’s Law Is Dead. “I heard some people suggest that they may even try to launch [Ada in Q1, 2023]. But the fact of the matter is RDNA 3 [the architecture powering Radeon 7000], and I’m told this consistently, is launching [in] Q4, 2022.”
While Nvidia reportedly asked TSMC to cut its 5nm chip order, the DigiTimes article we touched on above also mentions how AMD did not revise its own order, and is even apparently willing to accept price increases.
Ultimately, consumers stand to benefit the most from the current situation. After being subjected to years of board partners overpricing GPUs and massive delays in receiving orders, consumers can finally buy the best graphics cards on the market at a cost that’s even below their suggested retail price tags.
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