NVIDIA is not planning to increase production of its GeForce RTX 40 series graphics cards in the near future, according to two of its component suppliers, DigiTimes reports.
SiS Precision and KYEC, which provide outsourced semiconductor assembly and test (OSAT) services for NVIDIA, said they have not been notified of NVIDIA’s increased order requirements. The news comes just days after one of NVIDIA’s newly announced RTX 40 series graphics cards, the GeForce RTX 4070, hit the market.
There are multiple theories to explain NVIDIA’s approach. The GeForce RTX 4070 is available at a suggested retail price starting at CNY 4799, and while it offers many new features and performance improvements, it not only has to compete with AMD’s current graphics cards such as the RX 6800, which has recently dropped in price to $469 but also with the previous generation GeForce RTX 30 series graphics cards that are still in stock. RTX 30 series graphics cards are still in stock. Some believe that NVIDIA’s strategy is to maintain its current production demand in order to clear out its previous generation inventory. Meanwhile, the newly released RTX 4070, like the previously released RTX 4080, is overwhelmingly well-supplied with non-public versions.
Another theory is that NVIDIA is more focused on its enterprise graphics cards, such as the A100, which are being purchased in large quantities by multiple entities for AI training and chatbots, causing NVIDIA’s stock to continue to soar.
Regardless of the reason, NVIDIA still expects to release more RTX 40 series graphics cards in the coming months.
