Nvidia says it built too many GPUs — expect sales while it works on something ‘new’

Photo by Tom Warren / The Verge

The PC sales tanked this quarter so Intel is suddenly under fire. Billions of dollars of growth just went up in smoke and investors want to know what you're going to do about it. During today's Q2 earnings, Nvidia tried to appease those investors by revealing that exciting things may be on the way

The first thing is discounts. We suspected for a long time that Nvidia built too many gaming graphics cards and is now having to sell them for less money. "We found ourselves with a lot of inventory." To give the channel an opportunity to correct, our strategy is to sell in well below the current sell-through levels.

He said on the call that they had implemented programs with their partners to price-position the product in the channel.

In order to sell as many graphics cards and chips as it can before the RTX 4000 series arrives, it is cutting prices to distributors anyhow.

Related

The GPU shortage is over

The final price is up to partners and retailers, but those parties have their own incentives to clear shelves, even if they disguise them The trend we are seeing is completely down, with some cards once again appearing at MSRP after years of commanding 2x their price on eBay.

The current-gen Ampere will live alongside the next-gen ones, according to Huang. He said that there might be a place for extra graphics cards in the cloud. It's possible that Nvidia has other options than just clearing its inventory.

The CFO suggested that the company might have something different up its sleeves to improve its gaming revenue. She said on the call that they plan to reach a new segment of the market.

It's as good as my guess. My mind immediately goes to how a new generation of high- performance handheld gaming PCs are powered by a different company than before. The last post I wrote was about a handheld console. I don't know if it's a gaming take on the metaverse.

During today's earnings call, the company insisted that gaming demand hasn't fallen off a cliff despite the drop in revenue.