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NVIDIA Apparently Having Over-Supply Issue

Category: Video Cards
Posted: 08:54AM
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With the launch of the next series of GeForce GPUs still not on any public calendar, a lot of people have been asking questions as to why. According to some sources, it looks like a reason has to do with the current supply of graphics cards from NVIDIA, specifically the company made too many. With demand for GPUs being so high of late, from both gamers and cryptocurrency miners, NVIDIA apparently decided to increase manufacturing to satisfy the market. The problem is that demand from miners has been dropping recently, so fewer units are moving. While this has allowed pricing for a number of graphics cards to come closer to MSRP lately, it means there are storage facilities having to hold these unsold GPUs, and NVIDIA does not want to launch something new while sitting on product.

To give you an idea of just how severe this issue is, Seeking Alpha points out NVIDIA typically has significant influence over its partners, but one of the top three Taiwan OEMs still sent back 300,000 GPUs to the company. Additionally, this is the result of demand decreasing, and not the used-parts market being flooded with parts. NVIDIA has been buying up GDDR5 lately, too, which could be used to assemble boards with the unsold GPUs.

While there are still reasons to believe NVIDIA will launch its next GeForce series at least before the end of the year, if not in the coming months, this news does demonstrate how complicated launching a product can be. Something more to consider is how this might impact NVIDIA in the future, with how it deals with supply at times of potentially unstable demand.

Source: Seeking Alpha



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Braegnok on June 20, 2018 17:45

You reap what you sow, I hope those cards rot in the warehouse. :lol:

 

NVidia disgusted me with there Not Available BS claim on all cards at nvidia store all year,.. while sending cards to price gouging retailers to be sold at insane prices to consumers,..

 

,.. only way to get a new card was to buy from retailer charging $1200 to $1500 for a $699 card. 

 

Looks like most folks have had enough,.. and shut down there mining rigs, sold cards, quit building new rigs, and most likely will switch to AMD Graphics if they decide to start back up in the future.   

road-runner on June 20, 2018 21:58

Rot rot rot...

SpikeSoprano on June 20, 2018 22:19

I'm very happy I won my 1070 in our xmas contest, I never plan on gaming higher then 1080 so  it will probably be my last card and if it dies I'll go with amd, in my opinion they are still overpriced here in Canada so if their warehouses are full why don't they sell them at half retail, they'll still make big money !

slick2500 on June 21, 2018 00:55
Buy one get one half off?
Braegnok on June 21, 2018 01:29

I decided to go with AMD X470 build for new workstation, mostly running professional applications, open GL overlays,.. with Vega Frontier graphics card.  https://www.amd.com/en/products/professional-graphics/radeon-vega-frontier-edition-liquid-cooled

 

It's been awhile since I built an AMD system.  :cheers:

NCC10281982B on June 21, 2018 04:00
The 1080ti I want is still over $700 on Newegg.
Guest_Jim_* on June 21, 2018 12:06

I couldn't find a source for it, so I could be wrong (or my Google-fu was lacking) but I think I remember something similar happening to AMD years ago. Miners were buying up I think the R9 200 series for Bitcoin mining, so AMD saturated the market with them, then Bitcoin crashed (rise of Etherium maybe) so not only did demand vanish but formerly-mining cards flooded the used market. Effectively killed sales of that series of GPU, and I think its reputation too because the miners burned their cards significantly, so those buying them used were more likely to experience issues. (It seems today that might not happen again as miners are tweaking their cards for optimal efficiency, keeping power and heat low. Fans might die earlier though, as they would be going longer.)

Will be interesting to see what happens, especially NVIDIA cannot get through the unsold stock before the next series launches.


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