Reports have emerged regarding one rather big problem for Nvidia: an overabundance of graphics card stock. Why? Apparently, one of Nvidia’s top “Asian OEM partner” have apparently returned about 300,000 graphics card back to the green company. This, of course, means that Nvidia will now have to figure out how to clear out the massive addition to its inventory before it’s too late.
So, why has this happened? According to Seeking Alpha, the reasoning behind the return of 300,000 graphics cards back to Nvidia was because of low demand for Nvidia’s current generation of GPUs. It seems that with the ‘craze’ for cryptocurrency mining now dying down, there has been an abundance of secondhand graphics cards being sold in the market, which makes for a much better deal for some consumers compared to buying a brand new one.
That, and the fact that some consumers would probably want to wait until Nvidia releases its new generation of graphics cards before deciding to buy. Speaking of which, now that Nvidia has an oversupply of graphics cards left to clear out, it makes us wonder: will this affect the launch date of its next generation graphics cards? Hopefully this isn’t the case, but like other businesses, Nvidia doesn’t want to incur a huge loss either.
(Source: Seeking Alpha)