Friday, November 22nd 2024
NVIDIA Warns: GeForce RTX 40-Series GPUs Could be in Shortage in Q4
During NVIDIA's recent Q3 earnings call, CFO Colette Kress cautioned about potential GPU supply constraints in the fourth quarter despite strong gaming sector performance. The gaming division posted impressive results, with $3.2 billion in revenue, representing a 15% increase from the previous year. However, Kress indicated that fourth-quarter gaming revenue might see a decline due to supply limitations, though she reassured that supply should stabilize in early 2025. The company is scaling back RTX 40-series production as it prepares for the anticipated launch of its next-generation Blackwell architecture, which is expected to debut at CES 2025. The RTX 50-series GPU lineup, particularly the flagship RTX 5090 and RTX 5080 models, is rumored to be unveiled during the January event.
"Gaming, although sell-through was strong in Q3, we expect fourth-quarter revenue to decline sequentially due to supply constraints." For consumers, this could mean limited availability and higher prices for gaming GPUs during the holiday shopping season. The shortage is expected to primarily affect RTX 40-series cards, with a particular impact on laptop GPU availability. However, NVIDIA plans to continue producing select RTX 40 mobile chips alongside the upcoming RTX 50 series, suggesting a slow transition between generations. The holiday season is upon us, so this shortage of current-gen models could cost the company some additional customers, as the customer spending usually holds until holidays and holiday discounts.
Source:
Tom's Hardware
"Gaming, although sell-through was strong in Q3, we expect fourth-quarter revenue to decline sequentially due to supply constraints." For consumers, this could mean limited availability and higher prices for gaming GPUs during the holiday shopping season. The shortage is expected to primarily affect RTX 40-series cards, with a particular impact on laptop GPU availability. However, NVIDIA plans to continue producing select RTX 40 mobile chips alongside the upcoming RTX 50 series, suggesting a slow transition between generations. The holiday season is upon us, so this shortage of current-gen models could cost the company some additional customers, as the customer spending usually holds until holidays and holiday discounts.
79 Comments on NVIDIA Warns: GeForce RTX 40-Series GPUs Could be in Shortage in Q4
Purposely cut production so prices for 2+ year old cards will rise even higher going into the holiday buying season (and clear out existing inventory in the process), THEN release the new cards in Q1/25 with even gobsmackingly ridiculous prices & clean up all over again....
I guess Jacket Man be gettin some (more) new leather for Xmas.... :(
In terms of greed the best action for Nvidia is probably to not waste any wafers on 4000 or 5000 series and let gamers rot. Gaming cards are pretty much charity at this point for Nvidia.
Here I actually have to give Jensen at least a tiny bit of credit. He founded the company, so he has some stake in its long term health and reputation. This is in contrast to the generic 'gun-for-hire' CEO, who in many cases will respond to overwhelming incentives to min/max for short term gains. (i.e. if you can get a $40 million bonus today and a golden parachute when you're fired, you don't have to care what happens later.)
We complain, justifiably, about Nvidia's pricing scheme, but it could be far worse.
Hence why I'm not buying anything from them anytime soon.
@pavle
@bonehead123
so pls explain how msrp pricing is going to change, because they make less chips? so Nv will force shops to sell cards at more than sticker price?
right. guess i've missed that in the past 15y of buying gpus for me/builds.
@Wasteland
except its mainly because ppl bought 3/4 series, despite the prices, so why would you want to lower your income, just so we users are happy, make no sense for any business.
usually you buy what you can afford, no matter if its food/car/living quarters etc, but it seems for some, with pc parts they expect to get "lambo" perf, for the cost of a compact hatchback.
buy what your funds allow, or dont, if you dont like whats being offered.
but if those that own a 3/4 series 80 or 90 chip, should stop talking about unreasonable pricing, as "you" are part of the reason why nv thinks its ok to keep it that way, ignoring those that have one, but didnt pay for it (gift etc).
and you can see how happy i am with nv's tiers/pricing, as i still have a 2 series card...
Wait for RTX 50, wrost case, the RTX 40 will be more available second hand and you'll get it far cheaper, best case you get an RTX 50 if the price is not insane (if we forget about the 600W, 2000$ rumored 5090)
I mean, they can try...
The 4070 ain't no lambo with it's 192-bit bus and 12GB of VRAM but it has a price tag for $600 USD.
The fact that people buy a product doesn't make the price justified. You ignore the fact that Nvidia abuses clear monopoly power in the market (they have more marketshare than Bell Systems did before they were broken up and more horizontal and vertical integration) to heavily encourage people to buy Nvidia products.
Following your logic, every company is completely justified in manipulating markets for their own gain at the cost of customers.
And the Strix Halo, will probably cost like a used car, since AI prefix. and obviously the production costs. And will be non-existant, like most , very attractive and amazing mobile stuff, which AMD has been paper-launching for the last four years.
But yeah. That's what AMD should had use this nVidia artificial scarcity, to undercut them at every point, with better and cheaper mid-end solutions. Even if it would have been on "older" but mature n6 or n5 nodes. The mid and low-end doesn't benefit from top nodes, anyway.
That would have caught the arrogant nVidia with the pants down.
and even if they want to sell hatchbacks at lambo pricing, it only works if ppl buy.
again, assumption of users, of what a certain model nbr should have (specs/price), instead of seeing what you can buy with the amount of money you have, or not.
so maybe we should force starbucks too, to only charge 1$ like McD, because they sell overpriced coffee?
companies dont sell when there is no buyer, and change their product.
no one gets forced to buy stuff.
ignoring you spend how much for yours? right
And in the meantime, the games look progressively more like horse manure as we go forward. The perf on UE5 is just painful, and its not looking good while doing so either.
I'm getting close to making my retro gaming official, honestly. The only interesting games that come out are those that do NOT focus on graphics, ironically.
The things you are saying only apply in a competitive and free market. There are many GPU use cases where people HAVE to purchase a GPU. Streamers, medical imaging, professional work, AI, and much much more. You are making the assumption that consumers have bargaining power when in fact monopolies are designed to erode or eliminate that. If that wasn't bad enough, gaming is making up a smaller and smaller slice of Nvidia's total profits. Therefore the customer's ability to sway company decisions is increasingly small.
The actual number of people using their GPUs purely for gaming and nothing else is a minority of the market and even for those people, they need a GPU if they want a decent experience on their systems. Consider that Nvida's push for the use of Ray tracing in games has greatly increased GPU requirements. What this means is that the cost for a given performance level in new games has increased.
In essence you are saying that people should simply drop their hobby entirely if they don't like the pricing but that doesn't even remotely guarantee that prices will drop and only further proves how bad a state the market is in. Yes you as an individual might be able to not buy them but overall a monopoly is about capture percentage. In other words, the amount of people who have to buy or will begrudgingly buy for one reason or another.