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NVIDIA Blames AMD for Excess GPU Inventory NVIDIA Blames AMD for Excess GPU Inventory
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NVIDIA Blames AMD for Excess GPU Inventory
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Old 5th December 2018, 10:17   #1
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Default NVIDIA Blames AMD for Excess GPU Inventory

NVIDIA CEO Jensen Huang suggests there may be others to blame for his company's $700 million revenue miss and unexpected increase in midrange GPU inventory: in his latest earnings call, Huang pointed out there was "more than 12 weeks of inventory between us and the other brand," implying AMD was a factor. "Huang was asked how cryptocurrency, which accounted for only 10% of its quarterly revenue, expanded to one entire quarter's worth of inventory. He stated this was because the channel also included AMD's inventory." He explained that since NVIDIA's GTX 1080 is the top-selling GPU and AMD's RX 580 is number 24, the ratio of GTX 1080s to RX 580s in the channel inventory is 90:10. If AMD suddenly injects RX 580 GPUs into the channel and changes the inventory ratio to 50:50, it would create excess inventory, which is difficult to sell. The sudden rise in GPU inventory because of declines in crypto-related GPU demand suggests that this instance is a one-off and not affecting its long-term growth opportunities.

http://www.hardocp.com/news/2018/12/...gpu_inventory/
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