NVIDIA Swamped with Extra Inventory

R_Type said:
*Fingers crossed crypto is really starting to die*
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Sigh,....nice dream, but I am afraid cryptocrap is just like my Mother-in-law. She is never going to die and the entire purpose for her life is to give me continous streams of grief.

J3RK said:
I more see this site as a caller-outer-of-bullshit no matter who's providing the bullshit. Sometimes I agree, sometimes I disagree, sometimes I don't feel the bullshit is worth writing about, sometimes it's monumental. Either way, bias is the last thing I'd ever accuse this particular site or its owner of. Wallowing in the bullshit, perhaps :p
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As someone who is constantly reminded of his initials, via nothing I have not heard before, I concur. :) Hey,..wallowing can be fun!
 
BSmith said:
Sigh,....nice dream, but I am afraid cryptocrap is just like my Mother-in-law. She is never going to die and the entire purpose for her life is to give me continous streams of grief.
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As much I want the currency to die, I agree with you, it is here to stay.
 
Zion Halcyon said:
You want to know one thing I've noticed?

Every time there is a negative story about Nvidia you run into the thread to defend them. Be it engaging in whataboutism, claiming you don't see what other people are seeing, or engaging in pretzel logic.

You have a pretty remarkable 100% consistency rate in terms of Defending Nvidia recently.

So who do you think you're fooling?

I stated all that for your benefit. The people on this foum have eyes and see the same things I do.

At best you are hyper partisan towards Nvidia, at worst, well, we know that Nvidia pays people to be on the take and pretend to be normal people defending them in formus like these.

Not saying which one you are since it doesn't hardly matter. Either end of the spectrum is grossly untrustworthy when it comes to having a rational discussion.
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Hmm... I wonder why it is that you're the only one I've come across who gave my posting that much thought. Or at least the only one that thought it was worth that much effort.

I will agree that I've commented more to that effect lately, but that's because I'm typically a devil's advocate sort of person. I look at something, give it a bit of critical thought, and then decide, "is what I'm reading right now accurate, spun, maybe a bit over the top, but still correct" then I comment.

If you're referring to a recent Scottish thread, I watched the video, and even admitted that while most of the things he reported on were accurate, that I didn't think they had as much relevance as his effort into making the video would have one believe. I didn't say it was all bullshit. I didn't say that it was grossly inaccurate. I said that for me personally, none of it was something that would make me reconsider purchasing an NV product.

I wholeheartedly agreed that they were often-times a pretty dickish company and that I didn't agree with a lot of their practices.

I also said that just about every other company that I would buy something from has done similar things from time to time.

If anything I think I had some of the most balanced opinions in the thread. I gave a little, I took a little, I agreed a little, and I disagreed a little. Just like I do when I research something I might want to buy. Just because that happens to be a certain brand of GPU right now, does NOT mean it always has been, or always will be. I think you're either confused, or didn't actually read the bulk of my posting. I can almost guarantee that I've owned more ATI-based GPUs over the years than you. I don't know that for sure because I don't know you, but I can guess it. I've enjoyed almost all of them too. I don't really feel like I need to go any further toward proving that I'm not always on one side. I've owned video cards from just about every major manufacturer that ever made them.

I love technology pure and simple (though I am fairly picky about it sometimes). I'll buy whatever catches my eye at the time. I don't care who made it if it looks cool, and I might have a use for it.

What I have been discussing so much isn't who is better, who is the dickiest, who makes people cry. What I've been discussing is how I don't think so much of this actually even matters all that much. I don't advocate dickery, but I'm realistic about it happening from all sides for as long as anyone can remember, and how it will continue to happen despite your, or anyone else's preferences, so in the end, unless some drastic uprising of "the people" happened, who actually should give two fucks what anyone wants to buy, or how the company behind the product behaves, so long as they aren't killing people, and the product stands on its own merits?

Everything you said in that post has nearly nothing to do with any of my recent commentary, and most of it is laughable.
 
While I am sure they have extra stock available, I mean they have been making these same chips for 2 years now, I am thinking the delay for next gen is less to do with oversupply and more to do with their new stuff doesn't perform significantly better. They can't yet move to a new manufacturing process and their current architecture is pretty solid, the best they are probably able to do is slight clock increases and better binning which only really gives them better yields. Maybe some firmware updates for new features but people aren't going to upgrade for 5% frame rate increase and HDMI 2.1. I mean if the new cards even get HDMI 2.1 nVidia is pretty clear about their position with Display Port and the new spec that was supposed to come out in 2017 was delayed because the announced HDMI 2.1 spec embarrassed it back to the drawing board.
 
bigdogchris said:
Who would of thought this would happen after price gouging and people saying fuck it.
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See, now that's a tangible issue, that one can say fuck it about! You jacked your prices because of a different audience, it directly impacts me, so fuck you! THAT is the sort of thing I agree with people complaining about. Not whether Nvidia bought out the IP of your favorite failing company way back in the day. (sorry for continuing to bridge two thread topics) I'll stop now...
 
So, essentially we have been told that GPU prices are high due to supply being unable to meet demand from cryptocurrency mining, yet at the same time they are sitting on excessive unsold inventory?

How can both of these be true at the same time?
 
Zarathustra[H] said:
So, essentially we have been told that GPU prices are high due to supply being unable to meet demand from cryptocurrency mining, yet at the same time they are sitting on excessive unsold inventory?

How can both of these be true at the same time?
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If it's truly a same-time situation, then they can't really be both true. However, if it was a matter of miscalculation and bad timing, they both could be true. Which one it is (if either even applies though) is anyone's guess currently. I still don't think we have a full consensus of which GPUs are even impacted by this.

This is why I don't like to speculate with my money all that much :D There's always a chance you'll be holding something of little use in the end.
 
J3RK said:
If it's truly a same-time situation, then they can't really be both true. However, if it was a matter of miscalculation and bad timing, they both could be true. Which one it is (if either even applies though) is anyone's guess currently. I still don't think we have a full consensus of which GPUs are even impacted by this.

This is why I don't like to speculate with my money all that much :D There's always a chance you'll be holding something of little use in the end.
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We will only know in Nvidia next quarterly financials to see how inventory is impacted.
 
After reading the articles and looking around all 300K of these chips were from Taiwan, where "experts" were all predicting a huge increase in Crypto mining, but it never happened as they instead chose to regulate it and after making that announcement a number of the currencies either plateau'd or tanked killing off a lot of the investment interest that was going on there. Hopefully nVidia does build out these cards and sells them under their own brand from their site at MSRP, because if they instead send them out to their normal channel partners you can be damned sure they will sell them higher because they can.
 
Chimpee said:
We will only know in Nvidia next quarterly financials to see how inventory is impacted.
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Probably true. Even 300,000 GPUs is a drop in the bucket. (unless maybe they're 1080Ti) Even less than a drop if they do some kind of discount or rebadging scheme. I know people hate that, but it does provide at least a little value to certain market segments. If though it's as some people have guessed, and they're Tegra chips that could have been bound for Nintendo, I suppose it's time for NV to dream up a new Shield-series device. The latter doesn't seem likely though, since we're talking crypto-relations here.

If they're desktop or mobile GPUs, maybe they can find some use for them in computing applications.

Who knows. As viscountalpha said above, it's currently all speculation.
 
Zarathustra[H] said:
So, essentially we have been told that GPU prices are high due to supply being unable to meet demand from cryptocurrency mining, yet at the same time they are sitting on excessive unsold inventory?

How can both of these be true at the same time?
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Because clickbait does not concern itself with the pursuit of truth. ---Abraham Lincoln
 
J3RK said:
If it's truly a same-time situation, then they can't really be both true. However, if it was a matter of miscalculation and bad timing, they both could be true. Which one it is (if either even applies though) is anyone's guess currently. I still don't think we have a full consensus of which GPUs are even impacted by this.

This is why I don't like to speculate with my money all that much :D There's always a chance you'll be holding something of little use in the end.
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back in early 2017 "experts" were flouting Taiwan as the next major center for Crypto Currency expansion, the Taiwanese government instead chose to regulate it the expansion never happened and the Taiwanese market for Crypto either plateaued or nosedived (depending on the coins) so these are probably the chips that were being held to meet that demand that never came. The only Taiwanese OEMs that I can think of that could hold that much stock is either ASUS or Gigabyte so this is probably their doing.
 
That pic of the cargo ship in the link lol. Nothing inspires the photoshop troll in me like GPUs though, so I had to whip this up. Err I mean my uncle that works at NV sent me this pic. :sneaky:

EVILIDIA.jpg


:troll:
 
Lakados said:
back in early 2017 "experts" were flouting Taiwan as the next major center for Crypto Currency expansion, the Taiwanese government instead chose to regulate it the expansion never happened and the Taiwanese market for Crypto either plateaued or nosedived (depending on the coins) so these are probably the chips that were being held to meet that demand that never came. The only Taiwanese OEMs that I can think of that could hold that much stock is either ASUS or Gigabyte so this is probably their doing.
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That definitely does make the most sense. I've just seen a lot of wide-range speculation on what the chips are. Until we have some real info (if ever) I definitely lean toward your explanation.
 
For all the people wondering how there could somehow be simultaneous issues with over-supply and over-pricing in seeming defiance of Econ 101's supply/demand curve... just look at the diamond market. It's very possible.
 
Teenyman45 said:
For all the people wondering how there could somehow be simultaneous issues with over-supply and over-pricing in seeming defiance of Econ 101's supply/demand curve... just look at the diamond market. It's very possible.
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That's because De Beers is the mafia of the diamond world. They control an absurd amount of it making them a virtual monopoly. When synthetic diamonds started showing up in labs using CVD they bought up all the tech to control it. Then jewelry vendors mark up their cost 400%. (Unless you shop amazon for lab made gemstones) It's very easy to buy a high quality 1 karat ruby, sapphire, and emerald in a gold setting necklace <$100. And I prefer lab made. It means I'm not supporting a war monger in Africa somewhere.

http://www.businessinsider.com/history-of-de-beers-2011-12



AIB card vendors are competing with one another. If they are sitting on excess stock they will undercut their competition. NVIDIA doesn't care how much they sell them for. A chip sale is a chip sale.

To intentionally limit supply to raise price would be collusion on a massive level and would invoke RICO Act. The US gov't doesn't smile too broadly on collusion.
 
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mouacyk said:
Where is the corresponding amount of overstocked GDDR5 chips?
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Never purchased, most likely, that or si
Teenyman45 said:
For all the people wondering how there could somehow be simultaneous issues with over-supply and over-pricing in seeming defiance of Econ 101's supply/demand curve... just look at the diamond market. It's very possible.
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Look at the Taiwan Crypto market and this whole thing makes a lot of sense
late 2017: experts all claiming Taiwan was the next big place for crypto currencies
April 2018: Taiwan regulates and taxes it instead, crypto currency crash and 0 further investment.
June 2018: Major Taiwan OEM's (probably ASUS and Gigabyte) release stock of excess GPU's (probably preparing for the Crypto boom that will never come)
 
Lakados said:
Look at the Taiwan Crypto market and this whole thing makes a lot of sense
late 2017: experts all claiming Taiwan was the next big place for crypto currencies
April 2018: Taiwan regulates and taxes it instead, crypto currency crash and 0 further investment.
June 2018: Major Taiwan OEM's (probably ASUS and Gigabyte) release stock of excess GPU's (probably preparing for the Crypto boom that will never come)
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Assad_Whiskey.jpg

I'd say you're bang on the money there.
 
nvidia withholding the next generation is a given. As for inventory, time for a rebrand I guess hehe
 
dgz said:
nvidia withholding the next generation is a given. As for inventory, time for a rebrand I guess hehe
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Holding the next generation, as maddening is that is for enthusiasts, makes sense from a market competition standpoint. Crappy or not, it's business. For extra old stock though, yeah, time to get creative.
 
Even if this is true. All Nvidia has to do is wait to release the new video cards, and keep chugging along with the current GPU's. It is not like AMD is a threat right now ya know?

Why not just keep fine tuning their new GPU's, hell even wait for more GDDR6 stock to build so they can release all the new cards with it.

Just my 0.02c
 
The more I think about it, whomever claimed they are lower end parts might be onto something. Would explain why higher end parts are still somewhat higher in price. And lower end parts aren't as useful for mining as there is additional power overhead with lower end cards.

AMD does compete much better on the lower end. Could NVIDIA's GPP be a reaction to slow lower end card sales?


Whomever called "rebrand-relaunch" also made a smart call.
 
Prices have dropped a bit in recent months but they must be selling enough inventory that the top end cards are still mainly above msrp. Realistically demand should be dropping while supply is increasing but it isn't being reflected in the market as much as i'd expect by now.
 
Just release them all and tank the market already.
drop those prices way down

I thought all the miners were supposed to have bought them all.
excess impossible.
 
Kdawg said:
Just release them all and tank the market already.
drop those prices way down

I thought all the miners were supposed to have bought them all.
excess impossible.
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The Taiwanese Crypto market was supposed to go big in 2018 according to the "experts" but Taiwan instead decided in April to regulate and tax it, so this is probably what ASUS and Gigabyte were stocking preparing for the crypto boom that will never be.
 
DigitalGriffin said:
That's because De Beers is the mafia of the diamond world. They control an absurd amount of it making them a virtual monopoly. When synthetic diamonds started showing up in labs using CVD they bought up all the tech to control it. Then jewelry vendors mark up their cost 400%. (Unless you shop amazon for lab made gemstones) It's very easy to buy a high quality 1 karat ruby, sapphire, and emerald in a gold setting necklace <$100. And I prefer lab made. It means I'm not supporting a war monger in Africa somewhere.

http://www.businessinsider.com/history-of-de-beers-2011-12



AIB card vendors are competing with one another. If they are sitting on excess stock they will undercut their competition. NVIDIA doesn't care how much they sell them for. A chip sale is a chip sale.

To intentionally limit supply to raise price would be collusion on a massive level and would invoke RICO Act. The US gov't doesn't smile too broadly on collusion.
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And they can informally agree not to sharply undercut each other. Didn't we see this a while back in the RAM market. Didn't we see this in the LCD market. Didn't we see this in the platter drive market. Aren't we seeing this again in the RAM market.

Right now the AiB's, the middlemen wholesalers, and the front line retailers all have a vested interest in keeping GPU prices as high as possible for as long as possible, since people are still buying them despite the inflated prices and supposed inventory surplusage.

This also ignores that Nvidia products came to market with already inflated "MSRP"s as a result of the whole sleazy Founder's Edition surcharge for a bone stock, base line graphics card.
 
demondrops said:
ohwee.. didnt take long before i said crypto would flop until it did, and ppl scoffed at this and predicted infinite growth haha. i guess it didnt fully crash yet, but who knows. bitcoin is like pokemon GO at some point everyone is hyped into it and few months later its over, ppl still play it but. ppl are so easily controlled and manipulated into it, like idiots on spiritual stupidity pages on facebook who could tell us that bitcoin was the dawn of the new era, mind altering, life changing currency! just to fire up under the hype, they probably invested in bitcoins themselves. it could be a good time to buy bitcoin or the time of making insane profits could be over, it probably is. crypto is as lame as all other currencies.
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https://99bitcoins.com/bitcoinobituaries/
 
serial__thrilla said:
I'd buy 5-6 discounted nVidia 10-series cards. I need to finalize my Equahash/Lyra mining rig. Muahaha!:)
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Lyra only now (at least as far as established coins go) since equihash is being taken over by ASICS over the next couple months.
 
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