The GPU shortage is over. The GPU surplus has arrived!

A year ago, it was almost impossible to buy a graphics card for a retail price. The company has a different issue. During the company's Q2 2023 earnings call yesterday, Jensen Huang said that the company is dealing with excess inventory of its next-gen graphics cards.

In order to clear out their existing inventory, manufacturers of graphics cards and laptops will be required to reduce the number of graphics processing units that they sell. In order to prepare for next- generation products, the company has instituted programs to price position their current products. When translated from C-suite to English, this means that the company will be cutting the prices of current- generation GPUs to make more room for next- generation ones. The price cuts should be passed on to consumers by the partners.

The company said earlier this month that it would be missing its projections due to a decrease in demand. The company still expects revenue from GPUs to decline next quarter, despite the fact that the number of cards being sold to users has increased 70% since pre-COVID.

Demand for PCs and PC components is mostly down across the board, partly because of recession fears and partly because people bought a lot of PC hardware early in the epidemic. Because of falling prices and the transition away fromGPU mining, Nvidia is selling fewer graphics cards to cryptocurrencies miners. It's not possible to quantify the extent to which reduced mining contributed to the decline in gaming demand, according to the CFO of the company.

The good news for consumers is that new and used GPUs prices should continue to fall, as they have been for most of the year, and that we can expect at least a few RTX 3000-series cards to stay around. If you want the best performance, you should probably wait for those cards to come out. It's the best time in a long time to get a new gaming desktop for people who want to upgrade to newer graphics cards.