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Home » Graphics Card » Severe GPUs Shortage Has Ended – We Now Have a GPU Excess
Graphics Card

Severe GPUs Shortage Has Ended – We Now Have a GPU Excess

By Ali UsamaAug 26, 2022 11:31 PMUpdated:Feb 7, 2025 11:30 PM
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Now, GPUs Shortage is over

According to Nvidia, the company’s financials are negatively affected by oversupply.

What a rush of events – it was pretty challenging to acquire a GeForce graphics card at its original suggested retail price one year earlier. The corporation is now facing the inverse of that issue. In yesterday’s earnings report, Nvidia CEO Jensen Huang remarked that the business is struggling with “over inventory” of RTX 3000 GPUs in preparation for the arrival of the next-generation RTX 4000 lineup, which we will see in late 2022.

To tackle this, Huang claims Nvidia would restrict the quantity of GPUs it supplies to card makers and laptops, allowing those businesses to liquidate their current stock. According to Huang, “instituted programs to price position our current products to prepare for next-generation products.” Nvidia’s distributors are responsible for determining how much price reductions will be handed to customers.

A reduction in the market for Nvidia’s gaming GPUs was the primary reason for the company’s $1.4 billion quarter revenue shortfall. Even after accounting for COVID, Huang claimed that GPU purchases (the actual number of cards sold to customers) were up 70%. Despite this, the business anticipates a sequential quarterly reduction in graphics card sales from year to year beginning in the next quarter.

Consumers are not buying as many computers or hardware parts as they were at the beginning of the outbreak. Therefore, it’s safe to say that the economy as a whole is feeling the effects of the recession lingering effects. As the crypto price falls and Ethereum finally makes its long-awaited switch away from GPU mining, Nvidia supplies a limited number of graphics processing units (GPUs) to mine workers.

Chief Financial Officer of Nvidia, Colette Kress, has stated that “the company is unable to accurately quantify the extent to which reduced crypto mining contributed to the decline in gaming demand.” That’s significant since Nvidia has previously been into issues with the SEC over its practice of concealing the number of cards it sold for mining.

Also read:- How to Fix Nvidia GeForce Experience Error Code 0x0003

So, fresh and old GPU costs will likely keep dropping for the foreseeable future. Regardless of the Geforce RTX 4000 graphics card release, some users are likely to hold on to their RTX 3000 GPUs. Since both AMD and Intel are preparing to release newer CPUs shortly, gamers who demand the absolute optimum performance from their systems must wait for the arrival of upcoming GPUs. For now, if you have an outdated GPU in your gaming PC but considering an upgrade. It is the perfect time to do that.

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