NVDA has sold out excess inventory


The expected YoY decline was a result of windfall gains from the sale of GPUs (graphics processing units) to crypto miners. The company reported a sudden spike in the channel inventory of mid-range GPUs in the second half of 2018 as the crypto boom ended but demand from gamers did not pick up. At the fiscal 2019 third-quarter earnings call, NVIDIA’s CEO Jensen Huang stated that the excess inventory would take one to two quarters to clear. To help the channel clear inventory, the company even halted shipments of its Pascal-based mid-range GPUs. NVIDIA’s efforts have materialized, and the excess inventory has almost cleared in just one quarter.

They said it would take one to two quarters and they cleared the inventory in one quarter.



Good news for sure. Contemplating getting back in.

Also been watching Nvidia closely and wondering about getting back in.

But the article is a little misleading about what Jensen actually said about excess inventory in the linked VentureBeat articles

Here is the actual text.


Our business, as you guys know, was affected because we have excess inventory. That’s largely been a near-term business factor for us. We announced that, because of the post-crypto decline, we had excess inventory approximately equal to something that would have taken us another one to two quarters to sell. That affected our business and our earnings, the guidance for this last quarter. What’s going to happen is, we will sell through all of our inventory post-crypto in the channel between one to two quarters from last quarter.

It’s completely a crypto hangover issue. Remember, we basically shipped no new GPU in the market, to the channel, for one quarter. But the amount of excess inventory and market demand, channel velocity — you just have inventory divided by velocity, and that’s time. We said that it would take one to two quarters for all the channel inventory to sell out. 1080Ti has sold out. 1080 has sold out. 1070 has sold out. 1070Ti has sold out. In several more weeks 1060s will sell out. Then we can go back to business

He gives NO new information regarding inventory from the Q3 call. The mid range 1060 was the issue. Exiting Q3 1080ti, 1080, 1070, and 1070ti were already sold out or nearly sold out. The plan is still for 1-2 quarters from last quarter or at least several more weeks from now.

On another note several more games have realeased or are releasing very soon with Ray Tracing and DLSS and the performance is really outstanding when both are enabled. The RT DLSS push by Nvidia is gaining momentum and could very well leave AMD further behind. AMDs answer with 7nm is nothing new and not better performing than a cheaper RTX with RT and DLSS turned off. Just more cow bell from AMd.


Over next 1 maybe 2 years RT and DLSS will likely be standard in most games. Only one place to go for that.

GTC 2019 soon. Will we see Volta Next? Data center is extremely interesting right now and so is autonomous vehicles.

For another thread…



We said that it would take one to two quarters for all the channel inventory to sell out. 1080Ti has sold out. 1080 has sold out. 1070 has sold out. 1070Ti has sold out. In several more weeks 1060s will sell out. Then we can go back to business

The 1060’s were put out in July of 2016 and they are the mid range card right now. They are coming out with the 1660 cards next month which should push the 1060’s down to an entry level card. I think the 1060’s are becoming irrelevant.

Also with the new Turing cards hitting the market I think we can put the Crypto problem and the channel inventory in the back view mirror now.

Now that we’ve been able to test the RTX 2060, 2070, 2080 and 2080 Ti, we have a better picture of how they perform, and the two high-end cards are beasts.

As long as you have the high-end specs to back them up, these new Turing cards are able to perform much faster than their Pascal equivalents, and will be able to push it even further once DLSS or deep learning super sampling is more widespread. And, thanks to the AA improvements in the Tensor cores, we’re seeing about a 20-40% increase in games that don’t support DLSS.

In our benchmarks, the GeForce RTX 2080 is outperforming the GeForce GTX 1080 Ti by about 11% and the Nvidia GTX 1080 by a more impressive 32% in Middle Earth: Shadow of War in 4K. This performance difference is even more massive when you look at the Nvidia GeForce RTX 2080 Ti which not only is 20% faster than the RTX 2080 in the same title, but beats out the last-generation 1080 Ti by a massive 30%, destroying the GTX 1080 with a 45% performance delta.

Unfortunately, the Nvidia RTX 2070 is less impressive. While it does absolutely wipe the floor with the GTX 1070, it is essentially neck in neck with the GTX 1080 – barely hitting a 10% performance increase at 4K in Shadow of the Tomb Raider. At its price point we were hoping for more, especially after seeing the RTX 2080 and RTX 2080 Ti’s impressive performances.

The RTX 2060 is obviously the weakest of the bunch, but you shouldn’t dismiss it outright. The mid-range Nvidia Turing card far outclasses the GTX 1060, but what’s more surprising is that it surpasses the GTX 1070 Ti – for a lower asking price. We were able to get 90 fps in Shadow of the Tomb Raider at 1080p, whereas the 1070 Ti lagged behind at 86 fps. That’s not a huge difference, but the 2060 is $100 cheaper at launch.

Still, in traditional games, there’s no question that Nvidia Turing marks a total upgrade from Pascal. And, over time as drivers mature and users get ready to start overclocking their Turing cards, the difference is only going to grow. That’s not to mention the inclusion of incoming DLSS and ray tracing in games, which should only increase the Nvidia Turing performance gap.

To read more: