We all know that the lack of supply was a huge problem for Nvidia with the RTX 3000 GPU, but now it seems that the problem has turned into a drop in demand – which is apparently set to affect its incoming RTX 4000 graphics cards.
As spot by Videocards (Opens in new tab)An article from Digitimes (Opens in new tab) – Translated by RetiredEngineer on Twitter, and served with caution, with a side-order of skepticism – claims that Nvidia is facing a combination of factors that are increasingly considered bad news for the RTX 4000 range.
These reasons are known to be that Nvidia is feeling weaker than expected from the gaming sector, with a ‘huge channel inventory’ hanging, meaning the current-gen RTX 3000 graphics card remains to be sold. Then there is a flood of GPUs used by miners after the recent major crypto crash, which has exacerbated the current sell-out of ampere GPU stock.
This is a painful combination of factors, and one that means Nvidia allegedly wants to cut orders at TSMC for next-generation Loveless GPUs; But the TSMC team is reluctant to give Green any ground.
Nvidia has already made a ‘huge prepayment’ to TSMC to save 5nm of power, the report argues that TSMC will not make any concessions on that amount reduction, and Nvidia itself will have to find replacement customers to take any leeway in production. Power that is no longer needed.
However, the report noted that Nvidia may be allowed to take advantage of shipment delays between one-fourth or even two-quarters to give Tim Green a little more breathing space over the apparent extra capacity.
The report elaborates on the decline in PC demand, which affects not only Nvidia, but also AMD, and how Team Red reduced its order at TSMC – albeit not 5nm, but for 7nm and 6nm wafers, which means current-gen, not next-gen. , Products.
Analysis: What does this mean for the next generation of loveless launches?
There are many far-reaching claims in this piece, which alert us and make us aware to move more carefully than usual around this particular vein of rumor. That said, it’s not exactly a surprise to hear something like this.
Speculation has already indicated that Nvidia has stamped a ton of cash to secure power at TSMC for its next-generation graphics cards. And as we’ve already heard several times in Grapevine that Nvidia has a lot of extra stock in terms of the RTX 3000 model, gamers (and PC owners more broadly – in fact, all consumers) are now under pressure over this issue. By inflation and the cost of living crisis.
Part of the problem is that Nvidia GPU’s price tags are still relatively high – although they’ve dropped a good deal, and only (one touch) compared to MSRP’s – and especially high-end graphics cards are still costing some of the best. .
All of this supports the claims made here, and again it is clear enough that the large crypto GPU sell-off is making things even harder in terms of transferring existing Nvidia stock. Some people seem willing to take advantage of second-hand mining cards, which look quite bargaining (compared to the relatively high price tags on new boards, of course), despite the dangers inherent with these GPUs that we’ve covered – somewhere else.
If Nvidia’s next-generation graphics cards are released soon, sales of the RTX 3000 will stumble and slow down – and that’s something Nvidia (and its partners) can’t really afford. If there is some truth in this report and Nvidia is actually exploring options to suspend or cut RTX 4000 production at TSMC, can we now see the next launch date for next generation Loveless GPUs?
Or maybe Team Green will hold the same launch deadline – allegedly September, although recently mentioned October – but only a relatively small number of RTX 4000 graphics cards will be produced to launch, perhaps?
If so – and it’s still a big old one If At the moment – then it could lead to another GPU launch where stocks are thinner in the ground, and so prices are pushed further (scalpers fall on themselves to be related, no doubt; and all the inevitable chickens). Nvidia can even set the price for the RTX 4000 anyway – it certainly won’t be more affordable than current-gen products – to help keep up with the demand for amperes, the price tags on the RTX 3000 GPU can be further reduced To do ‘this is the amount of graphics card that is still seemingly running.
All of this is only theoretical, but nonetheless, there seems to be a growing feeling on the rumor mill that Nvidia is not in an ideal situation for balanced sales when introducing the RTX 4000 card (many of them) Will. Especially if the inflationary force and the larger economic picture get worse over the years (not an unimaginable scenario by any means).
So, Nvidia had to fight the ghost of supply problems with the RTX 3000 for a long, long time, but now the battle is against the head of demand? This seems like a potential scenario to us. However, the positive side here is that if the RTX 3000 stock build-up is really at the ‘huge’ level as suggested, then perhaps we can expect a much larger ampere GPU price reduction than we have already seen, as an effort. To shift these products undoubtedly into a higher gear.