After May this year, the mining card market began to collapse, and graphics card prices plummeted, before RTX 30 series graphics cards can be sold at a premium of one or two times, after falling back to the recommended price, some network cards even fell below the recommended price, even so, the pressure on graphics card manufacturers is still very large, the backlog of video memory inventory.
The graphics card market boom and bust, resulting in today’s situation in the end to blame who? Many manufacturers are dissatisfied, but not explicitly, many people point the finger at NVIDIA, that NVIDIA is the biggest beneficiary during the mining card boom, and graphics card prices are high so that they earn a lot of money.
The pot was dumped on NVIDIA, but CEO Jen-Hsun Huang denied it. Instead, he said in an interview at the RTX 40 series graphics card launch that NVIDIA took on a lot in the process, and that they didn’t raise their prices (supplied to graphics card manufacturers) by $1 when graphics cards were in short supply.
Jen-Hsun Huang said that during the pandemic (NVIDIA officials seem to have avoided the impact of mining on graphics cards, talking about the general environment almost always just mentioning the epidemic), the wafer delivery cycle increased from 16 weeks to a year and a half, and NVIDIA ordered a lot of inventory in advance.
He explained that no matter what the situation is, NVIDIA ordered a lot of parts, their AIB partners are much more flexible instead, NVIDIA took on most of the inventory when demand was high, NVIDIA’s shipment price is the same, $1 has not gone up, but NVIDIA’s parts costs are going up, these are borne by NVIDIA themselves, they have not transferred any They didn’t transfer any pressure to the market.
Now that the market demand has plummeted, Jen-Hsun Huang also mentioned the measures they are taking now. They made a commitment, and NVIDIA took a $1 billion asset write-down of their own while investing hundreds of millions of dollars in marketing to help the channel re-price.
