According to recent reports, NVIDIA intends to suspend the production of graphics chips for RTX 40 series cards for some time. In this way, the company wants to avoid oversupply. The thing is that we are already dealing with them, as the result of the Arete Research report.
Production of RTX 40 graphics cards
Arete Research, an analytics company, has published a report showing that NVIDIA currently has a supply of chips that – with current demand – will last for about 220 days. This means that after stopping production, the Greens would still have enough chips to sell graphics cards for 7 months.
This is the highest score among TSMC customers. For comparison, in the case of AMD it is about 120-130 days, and Qualcomm about 160 days. What is also crucial in this situation is the fact that the average for the last 5 years is only 92 days. This just shows how low the demand for electronics is at the moment. The crisis and rising inflation meant that we stopped buying not only graphics cards, but also computers, smartphones and a lot of other equipment.
As a result, NVIDIA may not have much choice and may be forced to lower the prices of graphics cards. It is hard to expect the company to stop production for as long as 7 months, so the phenomenon of oversupply will be present all the time. If the Greens want to get rid of the backlog of systems, including the RTX 30 series, the only sensible way to do so may be lower prices.
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2023-04-30 16:34:59
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