NVIDIA CEO Jensen Huang hints at ‘exciting’ next-generation GPU update in September

Published: Aug 25th 2022, 07:06 GMT   Comments

NVIDIA confirms excess inventory of RTX 30 GPUs

NVIDIA struggling to sell excess Ampere inventory, but Lovelace is on track to launch soon. 

During second quarter earnings call, NVIDIA CEO had to explain how the company will reduce the inventory of existing models before switching to next-generation. Jensen Huang called the upcoming series ‘exciting’, but also mentioned that Ampere is the most popular GPU they ever created. The only problem is that they made too many of them.

NVIDIA CEO finally confirmed that the company is struggling with ‘excess inventory’ of GeForce RTX 30 series. The main issue is not the inventory though but pricing, especially in regions outside China or US. While we often report on price cuts on high-end models from US stores, or the Chinese market flooded with post-mining GPUs, this is not always the case in other regions.

Huang confirmed the company is working with partners to correct price position as they prepare for next-generation. But so far, there is no word on official price cuts, as one would expect 2 years since the architecture was released.

Our strategy is to reduce the sell-in this quarter and next quarter to let channel inventory correct. Obviously, we’re off the highs, and the macro condition turned sharply worse. And so, our first strategy is to reduce sell-in in the next couple of quarters to correct channel inventory. We’ve also instituted programs to price position our current products to prepare for next-generation products.

Ampere is the most popular GPU we’ve ever created. It is in the top 15 most popular gaming GPUs on Steam. And it remains the best GPUs in the world, and it will be very successful for some time. However, we do have exciting new next-generation coming and it’s going to be layered on top of that. And so, we’ve taken — we’ve done two things. We’ve reduced sell-in to let channel inventory correct and we’ve implemented programs with our partners to price position the products in the channel in preparation for our next generation.

All of this we anticipate were working towards a path to being in a good shape going into next year. Okay? So, that’s what our game plan is.

— Jensen Huang, NVIDIA CEO at Q2 2022 Earnings Call

More importantly, Jensen confirmed he will talk more about next-gen GPUs at GTC’22 conference next month. This is the first time we will be hearing official word on new architecture:

We’ll get through this over the next few months and go into next year with our new architecture. I look forward to telling you more about it at GTC next month.

I look forward to next month’s GTC conference, where we will share new advances of RTX reinventing 3D graphics and gaming.

— Jensen Huang, NVIDIA CEO at Q2 2022 Earnings Call

Source: NVIDIA

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