Nvidia Overestimated Bitcoin Mining Demand, Stuck With Excess GPU Inventory:Source

iPwnz

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HIGHLIGHTS
  • Nvidia apparently has a surplus of current generation GPUs
  • This has resulted in the delay of launching new ones
  • A top OEM has reportedly returned 300,000 GPUs to Nvidia
At Computex 2018, Nvidia CEO Jen-Hsun Huang announced that the company would not be launching any new GPUs for "a long time". Perplexing when you consider that the GeForce 10 series of cards have been around for two years. Now we know why. It seems that Nvidia is stuck with excess inventory of 10 series cards due to overestimating the bitcoin mining GPU demand and the demand from gamers. So much so that one top Asian OEM partner reportedly returned 300,000 GPUs to Nvidia. According to a report from SemiAccurate (paid subscription) viaSeeking Alpha, Nvidia also aggressively bought GDDR5 that it now has in excess stock of lower-end GPUs that need to be made into boards.
"Nvidia has overestimated pent-up gaming demand and underestimated the impact of declining mining demand," claims Seeking Alpha before going into details on the state of GPU supply from Nvidia.
Oops!

Source
 
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iPwnz

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Rofl... Now put up a sale for the greedy needy or distribute among fans for maintaining strong fan base. Or sell all card rates @ throwaway prices.
When mining is no longer profitable... :p
Screenshot_20180621-131822~2.png


Notice how none of the cards are below the GTX 1060 or the RX480. Evidences that they've been through a lot.
 

booo

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Disclosure: I am/we are short NVDA.
I regularly read seekingalpha articles. my personal opinion is that they are highly biased and always trying to shape opinion. The above quote translated into simple english means that they are betting on nvidia's stock price tanking. they will make money if nvidia's stock price goes down.
 
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netant

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If this is true, we might be able to see any new GPU in 2018 or even till mid 2019.
 

iPwnz

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I don't think these corporate organizations are scared of fines imposed by trade courts. They will just pay a few hundred thousands and go back to doing what they did best and make millions.
 

WillAlt

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I am guessing the previous post about the sale in India at the discount price is connected?
 

iPwnz

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I am guessing the previous post about the sale in India at the discount price is connected?
Yes, but it wasn't known then. This is a new report. Also a meme I made
PhotoGrid_1530198511337~2.jpg

Nvidia is now trying to clear up old stock without cutting cost. GPU prices haven't fallen by that much in India. And technically prices should've dropped below MRP considering these are 2 years old models/SKU's. Scumbag capitalism shit.
 

William_Mboy

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Actually 57k for 1080ti is not bad at all even if it is 2 year old. Don't expect them to lower prices.
 

iPwnz

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There might be a big drop in graphics card prices next month
As usual, emphasis on "might."
Rumor has it graphics card pricing could drop around 20 percent next month.
However, Digitimes claims to have heard from sources within the upstream supply chain that suppliers are planning to axe graphics card pricing to clear out existing inventories.

The sources Digitimes spoke with expect to see an average price drop of around 20 percent. Assuming those price cuts translate to retail prices, there could be some tantalizing deals on the horizon.
Source: PC Gamer
Source: Digitimes

Not sure if it this will be as good here in India like in the U.S.
 
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booo

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cant find the link but I watched an interview with one of the analyst who was saying that they were downsizing bitcoin mining operations in many countries. this would increase the payout for mining but I am guessing that this would also decrease the gpu demand.

Edit: found the link
 
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nRiTeCh

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cant find the link but I watched an interview with one of the analyst who was saying that they were downsizing bitcoin mining operations in many countries. this would increase the payout for mining but I am guessing that this would also decrease the gpu demand.
This will decrease the gpu demand which went high due to mining. Gpu demand will get back to its original purpose- Graphics & Gaming!
 

iPwnz

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Rather than emphasizing on reducing prices of existing old cards why not release new cards with a favorable pricing factor?
They are never going to do that. It doesn't make any sense from a business logic. They cannot launch a new gen product at the same or better price as the older one which is still in the market in the thousands. No one will buy the older gen anymore and it will lead to a huge loss. Another business reason is the partenered-retail chains and stores will be hesitant to order as many volume as they did like the previous gen product. They will not be confident that people would even buy so much anymore when they already know that the manufacturer could release a new model out of the blue. Thus again leading losses to the manufacturers end. Assuming they launch new gen cards now they will have to set the prices higher than previous gen and who's going to buy them? The GTX 1000 series may be a little old but it's still the latest Nvidia cards because new gen hasn't been launched (in the market). It still has no replacement.
Why a common end user has to always await for a year or so to get his hands on whats called as latest offering?
We are all common end users. And whether they release the latest product is solely upto them and not us.
 

swagatrath

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I think the excess inventory is of GDDR5 memory and not actual GPUs.. So they can very well ship those memory with newer gen GPUs..
Else we would have definitely seen some kind of price drop by this time
 

iPwnz

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They are never going to do that. It doesn't make any sense from a business logic. They cannot launch a new gen product at the same or better price as the older one which is still in the market in the thousands. No one will buy the older gen anymore and it will lead to a huge loss. Another business reason is the partenered-retail chains and stores will be hesitant to order as many volume as they did like the previous gen product. They will not be confident that people would even buy so much anymore when they already know that the manufacturer could release a new model out of the blue. Thus again leading losses to the manufacturers end. Assuming they launch new gen cards now they will have to set the prices higher than previous gen and who's going to buy them? The GTX 1000 series may be a little old but it's still the latest Nvidia cards because new gen hasn't been launched (in the market). It still has no replacement.
Well you guys willing to shell out $1500 for the latest GTX 1180 card? :D