NVIDIA Earned $5 Billion During a GPU "Shortage" Quarter and Expects to Do it Again in the Next One

[newtekie1]

Why is the shortage alleged?
Technically, there is a shortage whenever demand is higher than supply. Don't we have enough evidence to conclude this decisively?

Apparently BTA believes that nVidia is creating a fake shortage by holding back chips from the market or purposely reducing manufacturing capacity. The reasons nVidia would do this are pretty non-existent, and there is no evidence of this, but that seems to be what BTA is saying he believes by saying the shortage is just "alleged".

 

[Deleted member 205776]

I love reading "NVIDIA doesn't care about gamers."

Companies care about nothing other than profit, they are not your friend. Not sure why you're surprised lol

 

[ThrashZone]

Hi,
Yeah waiting for the same "Give a used miners card new gaming life" p.r. campaign from nvidia lol

 

[HisDivineOrder]

3090 for $1500? That would have been cheap. Same with the 3080 for $700
NV sells for profit and it doesnt matter who is going to buy the cards. What matters is how many will be sold. Miners buy in bulk all they can and never complain about drivers.
Gamers buy 1 card in general and complain about everything. (mostly drivers)
People who think that gaming is the largest market are blind. NV doesn't care about gamers but how many product they sell. Hopefully everything and nothing will be left, maximizing profit.

The problem with that theory is reliability. Nvidia knows miners represent a short-term gain for a long-term loss. Every gamer that decides to buy a $500 console instead of their not-really-$700-and-is-really-$1k GPU is a gamer that may never come back to PC if it keeps happening, especially if the perception of PC gaming is that it's going to cost $1k+ to even match the same level consoles are offering. A price bump from console to PC is fine. Twice or three times the price for just the GPU is going to cause gamers to leave nvidia behind.

Then the mining craze collapses again because it will and suddenly nvidia is a company making video cards no one wants because they're already Xbox or PS invested. No, they want gamers to want GPU's and gamers have to think they can someday afford GPU's to want them enough to pine and plan to get them. I think Nvidia is as annoyed about mining as the gamers are. They know where their bread is buttered.

It's the AIB's and the stores that think they can scalp the scalpers. They're the ones that normally don't make tons of money off video cards and suddenly see a chance to blame anyone and everyone except themselves for the price hikes. Notice Asus? "It's the Trump Tariffs, but eh... also silicon shortages. Yeah. Even if those tariffs are gone? Don't expect pricing to change. Y'know? Because silicon! Yeah!" I kinda don't blame them because if ANYONE is that stupid and will pay twice, three times the price of a card to game on them, then perhaps PC gaming really is pricing most gamers out of doing it.

 

[Dux]

10 years ago i built entire gaming PC for €1000. Today that's the price of one 3060Ti here in Croatia. I think i will slowly switch to console gaming in the future. Thanks to crypto mining and greed, PC gaming is becoming more and more expensive.

 

[mechtech]

grid/array for 78 cards x 250W a card = cha ching for the electric utility, and everything appears to safe as per the electrical code

 

[Caring1]

grid/array for 78 cards x 250W a card = cha ching for the electric utility, and everything appears to safe as per the electrical code

How exactly does the electric utility cash in on stolen power?

 

[mechtech]

How exactly does the electric utility cash in on stolen power?

well someone is paying for it, and someone has to pay the utility

 

[Darmok N Jalad]

I love reading "NVIDIA doesn't care about gamers."

Companies care about nothing other than profit, they are not your friend. Not sure why you're surprised lol

Last I checked, we all care about profit. If you're earning less than you spend each month, you will be experiencing financial problems rather quickly. Companies simply do things with more zeros to the left of the decimal. If someone on this forum had a GPU to sell, would they not sell it for the most they could get for it, or would they sell it for less to the guy who can't afford it, but really "needs" it? Maybe some would, but generally, we all want to get the most for our effort. The problem lies when companies claim to be "looking out for the little guys" when they are really not doing anything of the sort. Even castrating gaming cards so the cards can't mine can be used to exploit a desperate gaming community.

To me, the danger lies in leaving the gaming industry in a world of hurt if gamers simply can't buy the gear to play games. AMD will win if people just move to consoles, so NVIDIA needs to watch themselves. GPUs don't live forever, but I bet they just hope gamers can get by on what they have until the next mining bubble bursts.

 

[TheUn4seen]

It's overwhelmingly likely that the miner in that photo knows someone in the supply chain and either called in some favors or simply paid them a bribe to make some inventory take a detour. It wouldn't even have to be illegal per se, "before you tell Best Buy how many PNY cards they're getting next week, subtract 50 and i'll pay you $200 each more than BB will pay for them".

That's basically how I got my 3080 in December for just a little over MSRP. After I sold the 3090 for exactly twice I paid at launch and had to use the 1080ti for a while, I called in a favor from a guy I know since the days I was building PCs for money, a guy somewhere in the middle of the supply chain. Needless to say, he was surprised I only wanted one.
Truth being told, the card already half paid for itself in Ethereum.

 

[Caring1]

Troll headline.
It should read Nvidia earned $5 Billion in GPU mining boom.
There is no shortage, sales are booming.

 

[newtekie1]

Troll headline.
It should read Nvidia earned $5 Billion in GPU mining boom.
There is no shortage, sales are booming.

Any time demand is higher than supply, there is a shortage. So, yes, there is a shortage right now.

 

[Caring1]

....there is a shortage right now.

Only for gamers.

 

[efikkan]

Only for gamers.

No, for everyone.
Both OEMs, gamers and the pesky miners are not getting all the products they want. But this GPU shortage has lasted since at least early last year, long before the mining boom(perhaps 5 years, depending how you measure). The mining boom just made it worse. And despite all the shops being sold out these days, large quantities are shipping every month. If you're lucky, you can get one within a week, if you're unlucky >3 months…

 

[$ReaPeR$]

my dudes, the problem is TSMC. how can anyone expect for the market to work when there is literally only one manufacturer for EVERYONE to rely on, and please dont start the bs "no actually there are more" because the other manufacturers are basically irrelevant. so, how is that outsourcing working out for everyone? nshitia, amd@cks and in(t)cel are just taking advantage of the situation like ANY company would in order to earn more. so, until we get more fabs do not expect for this to change. but what really gets my goat is seeing tech savy people fight over superficial irrelevant crap like nvidia, amd or intel give a flying f@ck about us.

 

[efikkan]

my dudes, the problem is TSMC. how can anyone expect for the market to work when there is literally only one manufacturer for EVERYONE to rely on, and please dont start the bs "no actually there are more" because the other manufacturers are basically irrelevant. so, how is that outsourcing working out for everyone?

You do know that Nvidia mostly relies on Samsung this time around, right?

You are right about the underlying problem of foundry capacity bottlenecking the supply, and there is no easy fix to that, to solve this they would have to plan this >5 years ago, and that's even assuming they could have gotten more lithography equipment (which is unlikely).

But there is one partial solution though, if Nvidia and AMD had booked more capacity at the previous nodes to make mid-range products (like RTX 3060). This is hard to fix now that this capacity is sold to others, but I hope they learn from this and book some "reserve capacity" for the next years.

Also, you should look up what literally actually means

nshitia, amd@cks and in(t)cel are just taking advantage of the situation like ANY company would in order to earn more. so, until we get more fabs do not expect for this to change.

How are they taking advantage of the situation? The inflated prices only benefits those further down the supply chain, not the makers themselves. I believe all three would love to sell more products.

 

[ThrashZone]

Hi,
The old back door sells are winning
Are manufactures accepting bitcoin too

 

[Andreshoi]

" Surging prices of crypto-currencies, coupled with the latest generation "Ampere" and RDNA2 graphics architectures having sufficient performance/Watt to mine crypto-currencies at viable scale, mean that crypto-miners are able to pick up inventory of graphics cards at wholesale; with very little making it down to retailers."

I don't see how the cards being good at mining mean that miners are able to get inventory before it hits retailers. Nvidia and AMD selling huge shipments directly to miners, however, would be a good reason why retailers aren't getting any...

Nvidia is selling huge shipments directly to miners......Not AMD.
AMD isn`t even make them and the dies goes directly to the consoles (contracts with Sony & Microsoft) and the cpu`s.
And even when AMD would make enough gpu`s.......1 BIG plus is that the 6000 series from AMD arent good at mining.

Go and look some mining video`s on You Tube.........There is a reason why you do NOT see any 6000 series gpu`s in mining farms.

 

[Rean]

" Surging prices of crypto-currencies, coupled with the latest generation "Ampere" and RDNA2 graphics architectures having sufficient performance/Watt to mine crypto-currencies at viable scale, mean that crypto-miners are able to pick up inventory of graphics cards at wholesale; with very little making it down to retailers."

I don't see how the cards being good at mining mean that miners are able to get inventory before it hits retailers. Nvidia and AMD selling huge shipments directly to miners, however, would be a good reason why retailers aren't getting any...

The majority of cryptocurrency mining occurs in China, so miners don't need to go through retail, they can just cut a bulk deal with whatever factory or middleman is in their area, who will be happy to push more sales at a higher unit price than what you or I are willing to pay (I'm estimating at least a (%25-50).

Crypto IS heading for a crash tho, so expect a lot of panic in the markets in the 2nd half of the year. COVID-enforced game delays also mean that we don't really have that big of a reason to upgrade.

 

[ozzyozzy]

It is happening

http://imgur.com/XFqp6n1

People are panic selling!
And for the love of God/Satan or whatever you like or don't like, please don't believe everything you read. These big companies are still selling their products to other people (AI? just one example Nvidia A100, just another example Nvidia Geforce NOW partners), and i am not talking about only miners, some of those products use the same Vram, some use same silicons and more. If a big company says "We have Clean Water shortage, it will affect the production, there was not enough rain here this year..." or "Sorry there was a power cut for 2 hours, prices may go UP" , just don't believe them, you know who they are. At Vram shortage why they released a 12gb version of a crap gpu? Why mining GPUs? And it is not only Nvidia, but also AMD and more... Open your eyes.

 

[dragontamer5788]

It is happening

http://imgur.com/XFqp6n1

People are panic selling!
And for the love of God/Satan or whatever you like or don't like, please don't believe everything you read. These big companies are still selling their products to other people (AI? just one example Nvidia A100, just another example Nvidia Geforce NOW partners), and i am not talking about only miners, some of those products use the same Vram, some use same silicons and more. If a big company says "We have Clean Water shortage, it will affect the production, there was not enough rain here this year..." or "Sorry there was a power cut for 2 hours, prices may go UP" , just don't believe them, you know who they are. At Vram shortage why they released a 12gb version of a crap gpu? Why mining GPUs? And it is not only Nvidia, but also AMD and more... Open your eyes.

With hundreds-of-millions of $$$ in market depth on Coinbase, it will require hundreds-of-millions of dollars of selling action to move the price down.

It might happen. But I don't expect any "fast" movements downward. With that being said: with GBTC selling at a severe discount, it shows that the (more mainstream) Wall Street players have grown weary of BTC and are selling off severely (GBTC normally trades at a severe 10%+ premium). Seeing GBTC at such a discount suggests that the general market is wanting to sell at a pretty severe rate.

All in all: I'm seeing mixed-messages. I'm not expecting any major route yet. Maybe a dead-cat bounce or two still. With that being said: barriers have begun to form at $50,000: it seems like the optimists are beginning to look for the exists. A few days ago, there were no barriers at all all the way to $60k. But without much market depth in the below $50k region, the price could very easily jump to near $50k (but probably not over $50k) again this week.

------

So IMO, its looking like BTC will stabilize here, at $45k and stay below $50k IMO. At least, for the near future. Lets see how accurate I am, lol...

I'll be surprised if BTC collapses this week. As much as I want a collapse so that GPU prices return to normal... I'm just not seeing any technical analysis that points to a BTC collapse IMO.

~$50 Million USD to move the price from $43k (current) to $50kish. In contrast, you need ~$50 Million to move the price from $43k to $42k.

A rout may happen, but first those MASSIVE supports in the $10s of millions need to be erradicated. Literally hundreds-of-millions of $$$ of BTC need to be sold to drop below $40k right now. There's tons of people who are aiming to "buy the dip" and support BTC at $42,000.

 

[Rean]

With hundreds-of-millions of $$$ in market depth on Coinbase, it will require hundreds-of-millions of dollars of selling action to move the price down.

It might happen. But I don't expect any "fast" movements downward. With that being said: with GBTC selling at a severe discount, it shows that the (more mainstream) Wall Street players have grown weary of BTC and are selling off severely (GBTC normally trades at a severe 10%+ premium). Seeing GBTC at such a discount suggests that the general market is wanting to sell at a pretty severe rate.

All in all: I'm seeing mixed-messages. I'm not expecting any major route yet. Maybe a dead-cat bounce or two still. With that being said: barriers have begun to form at $50,000: it seems like the optimists are beginning to look for the exists. A few days ago, there were no barriers at all all the way to $60k. But without much market depth in the below $50k region, the price could very easily jump to near $50k (but probably not over $50k) again this week.

------

So IMO, its looking like BTC will stabilize here, at $45k and stay below $50k IMO. At least, for the near future. Lets see how accurate I am, lol...

I'll be surprised if BTC collapses this week. As much as I want a collapse so that GPU prices return to normal... I'm just not seeing any technical analysis that points to a BTC collapse IMO.

View attachment 190346

~$50 Million USD to move the price from $43k (current) to $50kish. In contrast, you need ~$50 Million to move the price from $43k to $42k.

A rout may happen, but first those MASSIVE supports in the $10s of millions need to be erradicated. Literally hundreds-of-millions of $$$ of BTC need to be sold to drop below $40k right now. There's tons of people who are aiming to "buy the dip" and support BTC at $42,000.

Keep an eye on whatever happens to Tether, that's the key to this entire rally (and maybe the last one too).

 

[dragontamer5788]

Keep an eye on whatever happens to Tether, that's the key to this entire rally (and maybe the last one too).

Attorney General James Ends Virtual Currency Trading Platform Bitfinex’s Illegal Activities in New York

Bitfinex and Tether Must Submit to Mandatory Reporting on Efforts to Stop New York Trading Bitfinex and Tether Deceived Clients and Market by Overstating

ag.ny.gov

This announcement from the NY Attorney General seemed to have caused a $10,000 dip in BTC's price alone a few days ago. Basically proving that Bitfinex and Tether were working together (erm... I assume everyone knew that), as well as formally declaring it illegal for Bitfinex / Tether to interact with New Yorkers.

 

[Rean]

Attorney General James Ends Virtual Currency Trading Platform Bitfinex’s Illegal Activities in New York

Bitfinex and Tether Must Submit to Mandatory Reporting on Efforts to Stop New York Trading Bitfinex and Tether Deceived Clients and Market by Overstating

ag.ny.gov

This announcement from the NY Attorney General seemed to have caused a $10,000 dip in BTC's price alone a few days ago. Basically proving that Bitfinex and Tether were working together (erm... I assume everyone knew that), as well as formally declaring it illegal for Bitfinex / Tether to interact with New Yorkers.

Yep, and Tether/Bitfinex have only responded by pumping more and more faux-dollars into the market.

This will have a terrible ending imo. I hope that the crypto speculation craze didn't get too many working folks.

 

[64K]

I don't think Nvidia is doing anything to create shortages. Their revenue went up 61% over last year on their Annual Financial Report.

The miners and scalpers use bots to check when a store has any cards in stock and grabs them very quickly so that's why the stores say out of stock. As mentioned in the article Nvidia is raking in money from sales. Scalpers have gone to the extreme on prices and still they are selling the cards.

Another factor is Jensen Huang said a while back that PCBs and the components that go on the cards are in short supply and then there's the Pandemic which causes transportation issues and because a lot of people have been quarantined at home and are not able to work so they are buying cards to game on for entertainment.