Shipments of Nvidia graphics cards until 2022 could drop drastically, at least if the new forecast is correct.
It comes from DigiTimes (opens in a new tab) a report that claims that Taiwanese graphics card vendors forecast Nvidia’s shipments this year are expected to decline by around 40% to 50%.
DigiTimes points out that this will mean the amount of money hoarded by Team Green will also drop significantly, and even, as the report puts it, revenue will drop at “a pace beyond your imagination” – which sounds pretty serious.
It all boils down to cryptocurrency crashes and an overall weakening in demand for desktop GPUs after the pandemic.
Analysis: More Fuel To Lower GPU Prices?
This forecast for Nvidia is in line with the company’s recent fiscal results, which showed a massive drop in revenue, with gaming graphics cards hit hard, with sales plummeting 33% year-on-year. So the rest of 2022 introducing 40% or even more drop in shipments is not an unbelievable scenario; although of course we have to be very careful with predictions like the one from DigiTimes. Of course, this is just an educated guess as to what’s around the corner for Nvidia, and things could turn out differently.
That said, looking at the current economic climate – which is seriously shaky on many fronts – it’s not hard to imagine that the rest of 2022 will be a sticky gateway for Team Green. As inflation and cost of living increases hit the home and bring disaster to consumers, there will clearly be less money to spend on more frivolous things like upgrading graphics cards.
As you may have seen, Nvidia and its partners have already cut prices to counter what Team Green described as a “significant” drop in sales forecasts in the fiscal second quarter, and as argued earlier, we anticipate further price cuts to enter current-generation Ampere GPUs.
Reportedly, there is still quite a bit of excess RTX 3000 inventory to be disposed of before the launch of Lovelace’s next-gen graphics cards (and these new GPUs take away a significant portion of the remaining sales momentum of the current generation). And this prediction of potential continued weakness for Nvidia throughout 2022 – if the company does experience a revenue drop at an “unimaginable” pace – could bolster the need to generate further RTX 3000 sales through larger discounts.
After all, it’s very important that Nvidia’s graphics card partners can get rid of excess Ampere inventory before the RTX 4000 GPUs are fully released (and if the stock sale doesn’t happen in a timely manner, we can even see everything except the RTX 4090 delayed until 2023) ., as the rumor already suggested).
Of course, Nvidia is not the only company hit by the current economic problems. The DigiTimes report also says AMD and Intel now have gloomier delivery and revenue forecasts for this year. Intel expects a $ 8 billion to $ 11 billion drop in revenue and a 10% drop in PC sales compared to 2021.
AMD expects shipments to decline by around 15%, but its third-quarter revenue should continue to increase slightly, putting the company in a better position than Intel – after taking away Team Blue’s market share for server and embedded processors. Q2, during which the team Red’s revenues grew enormously (by 70%, not less).
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