GPUsNews

NVIDIA: GPU Price Drops to Continue till December, Next-Gen GPUs Likely to be Pricier

NVIDIA CFO Colette Kress has shared the chipmaker’s views on the flooded GPU market which caused its quarterly earnings to dip from Q1 thru Q2. Speaking at the Goldman Sachs 2022 Communacopia + Technology Conference, Kress stated that the market will take at least a couple of quarters to return to normal. She estimates that by the end of Q4, prices and inventory ought to normalize bolstered by the inflow of next-gen offerings into the channel.

We’re going to be watching that carefully this quarter and further, but that was our overall goal in providing that demand and helping folks understand that the GPUs from a pricing side have reached about the normal levels that we had hoped. We took action immediately to also reprice price programs to move this inventory through. We believe this is probably going to take us a couple of quarters to get through. Maybe at the end of Q4, we’ll be back at that normalization. We’ll start that positioning going forward where sell-in would be stronger than the sell-through.

We’ll probably see things start to return to normal or have maybe a little bit less of ASPs in the short term as we transition just based on that peak that we had seen during the pandemic. Over the long term, we still feel that there is that opportunity for ASPs to be a meaningful amount of our growth in gaming as well.

Colette Kress, NVIDIA CFO (Via: SeekingAlpha)

Furthermore, NVIDIA expects ASPs (average selling prices) to remain slim in the short term (mainly with existing RTX 30 series stock) with the RTX 40 series “Lovelace” parts driving it back to where it was, or perhaps even higher. This means that the upcoming GPUs will likely cost more than the sticker prices of their predecessors. Since we’re looking at a staggered launch, it won’t hit consumers as hard. The RTX 4090 is reportedly launching in October, RTX 4080 in November, and the RTX 4070 in December.

Areej

Computer hardware enthusiast, PC gamer, and almost an engineer. Former co-founder of Techquila (2017-2019), a fairly successful tech outlet. Been working on Hardware Times since 2019, an outlet dedicated to computer hardware and its applications.