It may take two quarters for Nvidia to sell out excess GTX 1060 stock

It may take two quarters for Nvidia to sell out excess GTX 1060 stock

It may take two quarters for Nvidia to sell out excess GTX 1060 stock

Don’t expect to see mid-range Turing GPUs anytime soon, as Nvidia is having trouble selling off their excess GTX 1060 stock, suggesting that it will take at least one more quarter to allow channel stock to normalise. 

Why has this happened? Well, Nvidia simply made too many GTX 1060 (midrange Pascal) graphics cards, expecting the mining boom to last longer and for all of their GPU stock to quickly sell to miners at high prices. The crypto crash hit Nvidia hard, causing mining-related GPU sales to plummet while also leaving retailers with an insane number GTX 1060 graphics cards on store shelves. 

This has left Nvidia in a position where it would be bad to release mid-range Turing graphics cards, as they would have to compete with both Pascal’s pricing and AMD’s Radeon series graphics cards, potentially leaving them in a position where excess Pascal stock will never sell, or sell for significantly reduced pricing. 

Below is a comment from Nvidia’s Colette Kress, Nvidia’s Executive Vice President and Chief Financial Officer, stating that it could take up to two quarters to sell out excess midrange Pascal inventory. 

     However, on midrange Pascal gaming cards, both channel prices and inventory levels remained higher than expected. Pascal is well positioned as the GPU of choice in the midrange for the holidays, and we expect to work down channel inventories over the next quarter or 2.  

In a later comment, Jensen Huang, Nvidia’s CEO, confirmed that there would be “future Turing product” for the “mainstream” market. He also stated that he would like to see midrange Pascal “channel inventory get normalized by the end of Q4″, as it would allow Nvidia to “get back to doing our work”. This suggests that mid-range Turing GPUs won’t be released until their excessive mid-range Pascal stock has been cleared. 


It may take two quarters for Nvidia to sell out excess GTX 1060 stock

Nvidia made a bet that the mining boom was going to last a while longer, a bet which has left them with excessive Pascal stock in the mid-range GPU market. This has placed Nvidia in a tricky position, as they need to clear this stock before releasing mid-range Turing graphics cards, as otherwise the inventory could be left unsold. 

In the mid-range, Nvidia is in a position where they have viable competition from AMD, with the RX 580 and new RX 590 graphics cards shipping with competitive pricing and a killer game bundle, making Radeon a solid option within this section of the market. AMD could prove to be a major obstacle between Nvidia and selling out their excess GTX 1060 stock, which is why Nvidia’s predictions list a 1-2 quarter window for their mid-range Pascal stock clearance. 

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