Home Tech Desktop A Glut of NVIDIA GPUs May Lead to Significant Price Drops

A Glut of NVIDIA GPUs May Lead to Significant Price Drops

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A Glut of NVIDIA GPUs May Lead to Significant Price Drops
A Glut of NVIDIA GPUs May Lead to Significant Price Drops

GPU prices rose dramatically during the pandemic, so these cards were in high demand. Consequently, retailers sold them at twice, thrice, or even four times the MSRP to ride this wave. Following the recent collapse of crypto, most people seem to have finished their WFH builds and disassembled their mining rigs.

Consequently, NVIDIA might just be experiencing GPU oversupply as production has surpassed demand. Here’s what you need to know.

Regarding GPU cards, the current NVIDIA lineup is the RTX 30 series. As a result of their reputation for long-term performance under high loads, this is the core of today’s gaming systems and crypto mining rigs. Due to a considerable drop in demand, there is now a surplus, which we did not anticipate amidst a continuing shortage of chips.

Jensen Huang, CEO of NVIDIA, was quoted as saying:  “We found ourselves with excess inventory. Our strategy is to sell in well below the current sell-through levels in the marketplace to give the channel an opportunity to correct.”

NVIDIA CEO Jensen Huang
NVIDIA CEO Jensen Huang

“We’ve implemented programs with our partners to price-position the product in the channel in preparation for our next generation.”

In other words, the excess inventory resulted from a miscalculated forecast and an unforeseen price drop. Retailers already indicated this by adjusting prices here and there earlier this year. In addition to competing with other brands, the market must contend with secondhand items. Preowned GPUs are being dumped on the preowned market by the world’s largest crypto mining organizations at attractive prices.

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By mentioning the upcoming 40 series GPU chips, NVIDIA hopes to maintain investor confidence. As with its predecessor, the 30 series, these cards are set to provide immense value through a stunning price-to-performance ratio. In a free market, retailers have the freedom to set their prices so that prices may crash as well.

As for NVIDIA GPU chips, we’ll have to wait and see what’s next.

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