Crypto Mining Chip Maker Nvidia Overstocks GPUs As Interest Plummets
Nvidia Overstock GPUs As Mining Interest Globally Plummets
NVIDIA seems to be having lots of trouble managing their GPU inventory or the excess of it as highlighted in new reports from Taiwanese based sources. Now the inventory issues may have exploded at NVIDIA HQ since a major Taiwanese OEM has allegedly returned 300,000 GPU units back to NVIDIA, that may end up causing a delay for the next-gen GeForce parts.
Their CEO Jen-Hsun Huang announced that the company would not be launching any new GPUs for “a long time”. Perplexing when you consider that the GeForce 10 series of cards have been around for two years. Now we know why. It seems that Nvidia is stuck with an excess inventory of 10 series cards due to overestimating the bitcoin mining GPU demand and the demand from gamers. So much so that one top Asian OEM partner reportedly returned 300,000 GPUs to Nvidia.
Gamers had been deprived of GeForce 10 gaming cards for several quarters after the mining spree started in 2017. The mining craze affected both NVIDIA and AMD, causing severe price inflations on gaming cards, and to top that up, the cards were in such a short supply that those who wanted to pay the hefty price for gaming cards had to wait for them to be actually available in retail & online outlets. We are talking about prices that reached over $2000 US for the Radeon RX Vega 64 and the GeForce GTX 1080 which retailed for $699 at launch.
The overestimation of the crypto demand and increased supply seemed to have backfired at NVIDIA. DigiTimes, in their latest report, highlights the dim prospects of crypto mining, so much so that Taiwanese suppliers of graphics cards are expecting major shipments and profit downfall in the current quarter.
“The sources said that the cryptocurrency mining heyday seen between April 2017 and March 2018 suffered an abrupt downturn in April due partly to the Bitcoin value plunging to under US$7,000 from a peak of nearly US$20,000 recorded in December 2017 and partly to governments of China, South Korea, the US and many European countries rushing to clamp down on digital-coin exchanges following exposures of scams, frauds and market manipulations,” DigiTimes reported.