NVIDIA has been actively shipping fewer GeForce RTX 30 series graphics cards throughout the quarter to correct inventory levels. At the Credit Suisse 26th Annual Tech conference, company CFO Colette Kress said that the gaming business has been reducing supply to catch up with demand. Following the cryptocurrency crash, GPU prices have been up in the air for most of the year.
So we have been under-shipping. We have been under-shipping gaming at this time so that we can correct that inventory that is out in the channel.
And as we discussed, we plan, hopefully, by the end of Q4, as we approach the end of Q4, that we will be in a solid position to that. That means as we move forward, we will start to get back up. We’ll get to some point of an equilibrium between sell-through and sell-in. And then we will likely get to where we’ll be selling in to build the channel for our Ada launch and all of the additional Ada products that we will see coming to market.
Our Ada launch, 4090 when it came out, yes, it was only the very first card and the high-end card, it’s sold out in 2 weeks. So we’re very pleased to see something that was a nod for us, that we knew that gaming, no matter what time of year, no matter what the situation is still a very important entertainment industry.Colette Kress, NVIDIA CFO
For NVIDIA, the good news is that inventory should be back to normal by the end of the year. In addition to steep discounts, the chipmaker has been selling repurposed higher-end dies as budget SKUs to empty stocks. Following the stabilization of channel inventory, the supply of the RTX 4080 and 4090 will be beefed up with the RTX 4070 Ti landing in January. The Ada notebook family is also be announced around the same time.
Kress confirmed that the next-GeForce RTX 4090 sold out in just two weeks without mentioning the less-than-successful RTX 4080. Interestingly, NVIDIA is laying a lot of emphasis on Steam hardware statistics, probably because it dominates the platform, with all top fifteen spots held by GeForce SKUs. Either way, things are looking solid for Team Green, even though the add-in board market is on for a toss.