NVIDIA’s GPU inventory has been approaching the upper limit for over a year. The post-mining boom has essentially derailed the chipmaker’s growth curve. Even now, following the release of the next-gen RTX 4080/4090 graphics cards, Jensen still has a substantial inventory to get rid of. By October, NVIDIA’s total inventory is valued at $4.45 billion, a massive increase of 70% over last year.
The inventory doesn’t account for GPUs alone. We’re looking at raw materials, inventory in progress, and finished or fully manufactured parts. The raw material inventory has risen by over 2x in the last two quarters to roughly $2 billion. Inventory in progress (chips being fabbed) is pretty much the same at $788 million (vs. $692 million in Q1), while finished product inventory is bubbling. NVIDIA had $1.73 billion worth of shipping-ready stock by the end of Q3, a 50% increase over Q1’s $1.22 billion.
NVIDIA’s Gaming Revenue has been dropping for two straight quarters, and the outlook for the next isn’t looking any brighter. The collapse of mining and the weakening PC market are choking chipmakers across the board.