NVIDIA says GeForce RTX 4090 sold out in 2 weeks, channel inventory stable and back to normal by first hour of 2023

NVIDIA CFO Colette Kress highlighted some important aspects of the gaming business including current channel inventory and the recent launch of the GeForce RTX 4090/4080.

NVIDIA Announces Strong Sales of GeForce RTX 4090 ‘Ada’ Graphics Cards, Channel Inventory Stable

NVIDIA’s Chief Financial Officer Colette Criss stated that they have been shipping GPUs into the gaming segment for some time. This was revealed during Credit Suisse’s 26th annual technical conference. We know that the market has recently been flooded with an excess of used GPUs due to the crypto craze coming to an end and with prices dropping on the last generation of GPUs, in both the retail and used markets, there has been little to no demand for any more GPUs. graphics. With that said, NVIDIA is now starting to refresh older RTX 30 GPUs with new offerings and resuming shipments to stabilize channel inventory and backlog.

The company expects their channel inventory to return to normal by the end of the fourth quarter and that they will resume shipments starting in the first half of 2023. The company also expects to build out its channel to launch Ada and all additional Ada-based GPUs (desktops/workstations/laptops) coming to the market.

So we were under charging. We’ve been short of shipping games at this time so we can correct this in-channel inventory.

And as we discussed, hopefully, by the end of the fourth quarter, as we get closer to the end of the fourth quarter, we’ll be in a strong position to make that happen. This means that as we move forward, we will start to come back. We’ll get to some point of equilibrium between selling out and selling out. And then we’ll probably get to where we’ll sell to build the channel to launch Ada and all of the additional Ada products that we’ll see come to market.

Colette Chris, Chief Financial Officer, NVIDIA

Kress also reports that NVIDIA’s GeForce RTX 4090 and RTX 4080 are still in their early days. We know from our previous reports that NVIDIA has shipped around 160,000 RTX 40 series graphics cards since mid-November. That number might be higher now but we also know that the bulk of the shipments includes the GeForce RTX 4090 graphics card which has been the flagship launch of the Ada family so far. On the other hand, the NVIDIA GeForce RTX 4080 didn’t see as much response as the RTX 4090 due to its poor performance for the dollar. Even the speculators who got the cards and tried to sell them at ridiculous prices resort to selling them at MSRP as no one cares about them.

Ada is only in the early days of shipping now. We have shipped, one of our high end cards is the 4090 and our 4080 is just starting to sell too.

Colette Chris, Chief Financial Officer, NVIDIA

It is also noteworthy that NVIDIA’s GeForce RTX 4090, despite being the flagship with a starting price of $ 1,599, sold out in two weeks. We know that NVIDIA initially shipped 100,000 cards (GeForce RTX 4090), which is pretty impressive if the chip maker can sell out its entire inventory in less than two weeks.

Our Ada launch, the 4090 when it was released, yeah, it was only the first card and the high-end card, it sold out in a couple of weeks. So we’re very pleased to see something that’s a nod to us, that we knew that gaming, no matter the time of year, no matter the mode is still a very important entertainment industry.

Colette Chris, Chief Financial Officer, NVIDIA

NVIDIA also indicated its popularity by including numbers from a Steam hardware survey. The company mentions that the top 15 cards on SHS are from NVIDIA. The GTX 1650 recently took the first place with a market share of 6.27%, followed by the GTX 1060 with a market share of 5.77%, and the RTX 2060 ranked third as the only RTX graphics card with a market share of 4.64%. Neither the RTX 4090 nor the RTX 4080 have yet appeared in the Steam Hardware survey but they should start to gain some share by Q1 2023.

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We’ve seen some great new players join this market and capitalize on our gaming leadership. Ada is not only an industry leader, so is Ampere. So the first architectures No. 1 and No. 2 are NVIDIA. We continue to see what we’re seeing in terms of Steam. Steam still has a record level of online players and games. And the top 15 card on Steam is NVIDIA, all 15 out of 15. So this is an area that gamers will keep playing for life. And we’ve been watching this industry through great times and also through some tough times. It’s an economical sport because you can choose many different form factors at many different price points for the games you want to play.

Colette Chris, Chief Financial Officer, NVIDIA

NVIDIA is expected to introduce more mainstream GeForce RTX 40 series graphics cards in the first half of 2023. The company recently scored big in its latest separate GPU market share report, claiming up to 88% of the market share according to a report. JPR. We can expect this trend to continue in the coming quarters until NVIDIA and AMD enter the mid-range segment where the majority of the market share comes from.

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