Nvidia shares shed 18 per cent due to 'crypto hangover'

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16-11-2018, 01:21 PM
HEXUS

Nvidia shares shed 18 per cent due to 'crypto hangover'

Quote:

But Jensen Huang expects inventory to be back to normal levels by the end of 2018.

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16-11-2018, 02:44 PM
EN1R0PY

Re: Nvidia shares shed 18 per cent due to 'crypto hangover'

Crazy idea: why not make the old cards much cheeper and sell the new cards at the expected release prices? That way they could have shifted all the old stock to people with low/midrange budgets and gained market share by destroying AMD sales, and still sold more of the new cards. Sure you "could" get more for them but they're actually just gathering dust. Did they really think people would buy a years old card at near its original release price or not wait for the obviously over priced new range with as yet unsupported features to come down in price?
16-11-2018, 03:54 PM
The Hand

Re: Nvidia shares shed 18 per cent due to 'crypto hangover'

Quote:

Originally Posted by EN1R0PY

Crazy idea: why not make the old cards much cheeper and sell the new cards at the expected release prices? That way they could have shifted all the old stock to people with low/midrange budgets and gained market share by destroying AMD sales, and still sold more of the new cards. Sure you "could" get more for them but they're actually just gathering dust. Did they really think people would buy a years old card at near its original release price or not wait for the obviously over priced new range with as yet unsupported features to come down in price?

I think Nvidia are tacitly trying to signal AMD and Intel to follow their lead price wise when they release cards next year and 2020. Graphics card prices might end up like the smart phone market.. Whether they succeed or not is another question. Or maybe they are just price gouging as much as possible while they can, until significant competition arrives next year/2020 and prices become more reasonable again. I hope the latter.
16-11-2018, 08:39 PM
3dcandy

Re: Nvidia shares shed 18 per cent due to 'crypto hangover'

Because they can keep prices high. Simple as
17-11-2018, 01:16 PM
kalniel

Re: Nvidia shares shed 18 per cent due to 'crypto hangover'

Quote:

Originally Posted by 3dcandy

Because they can keep prices high. Simple as

Doesn't that contradict this news, which shows they can't?
17-11-2018, 03:46 PM
3dcandy

Re: Nvidia shares shed 18 per cent due to 'crypto hangover'

Quote:

Originally Posted by kalniel

Doesn't that contradict this news, which shows they can't?

I'm generalising. They've tried to keep prices high cos they could but it appears to have backfired a bit...
17-11-2018, 05:49 PM
Iota

Re: Nvidia shares shed 18 per cent due to 'crypto hangover'

If they wanted to shift inventory, then they should have done something to deal with the pricing of the old inventory. Equally the pricing of the new RTX cards is questionable when they rely heavily on new features barely supported at launch.

If they had the pricing strategy correct at launch, we probably wouldn't be seeing the dip in share values due to sales revenue and less inventory. Equally, this has been caused by the crypto-currency boom, so really is an auto correction from the gains they made with that. It wouldn't continue unless Nvidia specifically created an ASIC for that market.
18-11-2018, 01:02 PM
watercooled

Re: Nvidia shares shed 18 per cent due to 'crypto hangover'

I've just noticed Scan have plenty of stock for 1070Ti and below, but very little choice for 1080 and 1080Ti. If Nvidia have stockpiles of Pascal GPUs you'd expect them to be trying to shift them, and TBH I'd expect the profit margins to be higher on those Pascal parts if anything, given their smaller die size e.g. 1080 vs 2070. On the other hand, maybe they're just binning them all as 1070Ti or below so as to avoid cannibalising sales of the 2000 series, and making Turing look bad, given there's really no good reason to buy them at a higher price vs Pascal?

Or maybe it's not Nvidia's doing - maybe it's AIB's, distributors or retailers preferring the 2000 series?
18-11-2018, 01:41 PM
Mr_Jon

Re: Nvidia shares shed 18 per cent due to 'crypto hangover'

Quote:

Originally Posted by EN1R0PY

Crazy idea: why not make the old cards much cheeper

That'd be a chicken move.
18-11-2018, 11:19 PM
aidanjt

Re: Nvidia shares shed 18 per cent due to 'crypto hangover'

Quote:

Originally Posted by watercooled

I've just noticed Scan have plenty of stock for 1070Ti and below, but very little choice for 1080 and 1080Ti. If Nvidia have stockpiles of Pascal GPUs you'd expect them to be trying to shift them, and TBH I'd expect the profit margins to be higher on those Pascal parts if anything, given their smaller die size e.g. 1080 vs 2070. On the other hand, maybe they're just binning them all as 1070Ti or below so as to avoid cannibalising sales of the 2000 series, and making Turing look bad, given there's really no good reason to buy them at a higher price vs Pascal?

Or maybe it's not Nvidia's doing - maybe it's AIB's, distributors or retailers preferring the 2000 series?

I'm fairly sure it's just supply and demand playing itself out. Turing turned out to be a flop, (much) more money for the same performance, with a useless bell and whistle attached that nobody can really properly use for a year or two, and that turned holdouts back onto high end Pascal, and stock is running dry. The only Turing card that seems to be selling as fast as they come into stock is the 2080 Ti, because despite being stupidly expensive, it's genuinely the only new card that's actually got performance chops.
19-11-2018, 07:21 PM
watercooled

Re: Nvidia shares shed 18 per cent due to 'crypto hangover'

I saw a story today suggesting the big stockpile might be in the 1060 segment, not that I have that much faith in the website, and I don't see them mention a source for this: https://www.techspot.com/news/77468-...ge-turing.html

It would make sense though, and would be another reason why we've not seen any real replacement for that (not that it's unusual for Nvidia to update this segment later anyway). That GPU was one of the most in-demand from Nvidia for mining IIRC.
19-11-2018, 10:27 PM
DanceswithUnix

Re: Nvidia shares shed 18 per cent due to 'crypto hangover'

Quote:

Originally Posted by watercooled

I've just noticed Scan have plenty of stock for 1070Ti and below, but very little choice for 1080 and 1080Ti.

Overclockers has hardly any 1070 cards but plenty of higher 10 series ones. Perhaps it is partly what the retailer wants to risk.

Seems a shrewd move from Nvidia to me though, they sell off their stockpile of 10 series cards, no-one complains about a paper launch because at £1500 per card there are plenty of 20 series available if you were that serious about buying one. Meanwhile if the shares dip, they can do a cut price buy back program.