Well, mainly, I don't think that nvidia can afford to drop their market share at a time when growth is uncertain - it's their leverage for near future. If we believe that 1) AMD is competitive and they actually care and 2) They are in a better position margin-wise => Jensen's pricing power should be limited by market rivals. Yeah, sure, they dropped all the way back to a number they haven't seen for more than a decade (you can't slow down CapEx immediately over one quarter like you cut prices!) but they're also in a new territory where AMD can undercut at the high end (even if it's by $50) and Intel is about to release (admittedly bad) mainstream products that they promised to price aggressively.
And yes, I can imagine 3090s selling for $550. I mean, there's already used ones popping up at $850-900. Besides, even Rolex prices are going back down this year, if we try to make parallels with premium products, which these GPUs are. So yeah, I rest my case, I guess we'll see in a few months who's going to be right.
Nvidia needs mostly to expand to other markets. They are doing it for years, by transforming the dumb graphics chip to a compute monster. They invested heavily in AI and Machine Learning, they spend billions on Mellanox, they tried to become the next Intel by buying ARM, so they can dictate where ARM architecture which direction will prioritize. Probably focussing on servers, desktops, laptops instead of mobiles. They failed, so they will have to play with what ARM will offer them and what they can build on that, like what Apple and others are doing. But to do so, expand to other markets and be the protagonist there, not just the third, forth option, they need money. They need higher profit margins than those they are "suffering" this quarter. So, selling cheap, even if that would expand their market share, it's probably NOT an option. Selling ultra fast cards for cheap means low profit margins AND those buying those cards wouldn't be again customers for the next 1-2-3-5 years. Selling for a premium means, higher profit margins, another chance to get rid of RTX 3000 and RTX 2000 stock at prices that will not be under cost, people without unlimited money buying cheaper models, meaning they will be customers again sooner.
Now, selling expensive (let's suggest 3090 Ti at $700, 4070 for $800, 4080 for $1200 and 4090 for $2000) will open up opportunities for the competition right? Well, what can the competition do?
Intel. Absolutely NOTHING.
AMD. Follow Nvidia's pricing. Why? Because they don't have unlimited capacity at TSMC and whatever capacity they have, they prioritize first for EPYC and Instinct, then for SONY and Microsoft console APUs, then CPUs and GPUs for big OEMs, with mobiles probably being before desktops, then retail Ryzen CPUs and lastly retail GPUs. That's why AMD had such nice financial results. Because they are the smaller player, with the least capacity, selling almost EVERYTHING they build to corporations and OEMs, not retail customers. We just get whatever it's left. So. Can AMD start selling much cheaper than Nvidia. No. Why? Because of capacity limitations. Let's say that RX 7600 is as fast as RTX 3090 Ti and is priced at $500. A weak after it's debut, demand will be so high that the card will become unavailable everywhere. It's retail price will start climing and will get to cost as much as the RTX 3090 Ti. AMD gets nothing from that jump from $500 to $700, retailers get all that difference. We already seen it. RX 6900 XT, RX 6800 XT, RX 6800 came out with MSRPs that where more or less logical if not just very good. Then the crypto madness started and latter mid and low end models where introduced at MSRPs that where looking somewhat higher than expected when compared to MSRPs of Nvidia's already available models.
So, Nvidia can keep prices up and don't fear of losing 5-10% of market share, knowing that whatever loss they will have because of competition will be controllable. On the other hand their profits will be much higher, even with that minus 5-10% market share.
Just an opinion of course. Nothing more.