Nvidia Promotional Plans for RTX 4000 and Negative Impact

Nvidia Promotional Plans for RTX 4000 and Negative Impact

Nvidia Promotional Plans for RTX 4000 and Negative Impact

Nvidia has hinted that Lovelace graphics cards may be introduced in the future, but there are price issues.

Nvidia took note of the positive news regarding the RTX 3000 graphics cards, which stocks have returned to normal according to the manufacturer, before hinting that despite strong future demand, it will fall as next-gen graphics cards are already looming on the horizon.

Information provided by an insider Seeking_Alpha, namely from the earnings call (according to PC Gamer) for the first quarter of Nvidia’s fiscal year 2022 (quarter to May 1), with the participation of CEO Jensen Huang and CFO Colette Kress.

Kress made some interesting comments, including the following: The supply chain is almost back to normal and we expect it to stay at that level in the second quarter.”

In other words, stocks of Nvidia’s current series graphics cards have almost returned to normal levels, which is reflected in the pricing of video cards, which is returning to normal, rapidly approaching the RRP from a manufacturer abroad. In Russia, this process takes place with some delay, and the geopolitical situation also affects prices.

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The CFO also notes: “We expect the market to have a stable impact, but the upcoming transition to a new architecture at the end of the year predicts a consistent decline in revenue in the second quarter.”

What does it mean? Let’s get it straight, it’s obvious that the transition to the new architecture is about RTX 4000 cards, from which Kress seems to suggest that sales of current generation cards (Ampere) will fall in the second quarter under pressure from the upcoming Lovelace line.

Analysis: Graphics Card Buyers Will Wait

First of all, it looks like Nvidia is going to do exactly what the rumors keep promising us, revealing the RTX 4000 soon enough.

Remember that the second fiscal quarter that Kress is discussing here is the period that runs from May to early August. An avid hardware analyst has floated the idea that Nvidia could reveal the Lovelace series as early as July, which would also be the last month of the fiscal quarter, and if this is true, the Green Team will have an early demo of RTX 4000 graphics cards during this period, which will negatively impact on sales of RTX 3000 graphics cards.

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Simply put, the demonstration of the next generation of video cards, their capabilities and potential, will hit sales of the current generation. All the attention of users and, of course, gamers, will be riveted to Lovelace, high-performance graphics cards against which the RTX 3000 will be in a losing position. As for the dates, there are rumors that the presentation of Lovelace will take place in July, and sales of new video cards will start in September.

As a result, this information allows you to read between the lines of the CFO, who sends a signal that the release of the RTX 4000 is just around the corner, able to put consistent pressure on current generation sales as the second financial quarter ends.

This information comes with a caveat, as we’re not sure what Nvidia will offer first for the Lovelace release. Rumor has it that the first graphics card could be the RTX 4090, which starts at an exorbitant price, creating a long wait for more in-demand graphics cards (RTX 4070 may not come out before November if the rumors are to be believed, but this is still dubious information).

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In any case, the consumer should expect RTX 3000 prices to fall below the recommended level – perhaps even significantly lower if retailers feel the need to rekindle interest in stagnant graphics cards in the face of declining demand. We were dreaming, of course …

Oh, and one last thing to note – Kress also reports that almost a third of Nvidia graphics card users are using RTX today, so the number of gamers moving to Nvidia’s best trace hardware acceleration will certainly increase.

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