Good times for all buyers of graphics cards, bad for manufacturers: The price of graphics cards are falling, the demand is in the basement. One of the leading original equipment manufacturers from Taiwan sent 300,000 chips back to Nvidia. These could not be obstructed due to the sales slumps. Apparently, Nvidia has over-estimated both the demand of gamers and those using GPUs for crypto-mining. In recent years, management has been able to rely on constantly rising prices, but that’s history for now.
At the beginning of June, Nvidia’s CEO at Computex announced to astonished listeners that the company would not produce new graphics cards “for a long time”. The last graphics cards came with the GeForce 10 series about two years ago on the market. The announcement by Jen-Hsun Huang came as a surprise. But according to a report from the technology portal SemiAccurate, Nvidia is currently sitting on its hardware. Before new series can be produced, the old hardware must first be sold and thus made into money.
Apparently, both the gaming and the crypto market have been rated too positive for the current year. According to SemiAccurate, Nvidia’s management recently approved the redemption of 300,000 chips from one of Taiwan’s top three hardware manufacturers. This step is very notable, according to industry observers, because the company usually does not pay attention to the manufacturers of its components. If you have agreed to the return of so many new chips, this speaks a very own language.
Difficult times for Nvidia: 300,000 chips stored, presentation canceled
In addition, Nvidia has withdrawn a submission about their upcoming graphics card generation back from the program. Consequently, the trade show “Hot Chips 30” will have to make do without an announcement from the company. The reason for the drop in sales is probably also the specialized hardware for the mining, which makes the graphic cards big competition. Meanwhile, it is hoped that demand may possibly pick up again in the late summer of this year when the Asian Games 2018 show takes place. Whether Nvidia is ready for new announcements will depend primarily on the sales proceeds made in the meantime. All that is certain is that the time for a new GPU series would be more than ripe after two years. The competition does not sleep.
Most likely, one will focus increasingly on the needs of the game fans again in the future. Also because in mining, the sales trees are no longer growing in the sky. In addition, it is becoming increasingly difficult to compete against the mining-focused and thus more effective hardware of Bitmain and other manufacturers. According to Nvidia in the first quarter of this year, the share of sales for the crypto market was close to 10 percent, which was $ 289 million in three months. At a press conference, company executives estimated that their share would fall sharply in the second quarter. It remains difficult to earn money in this sector.
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