NVIDIA CFO Expects GPU Inventory To Remain Stable During This Quarter

Recently, Nvidia announced its financial results for the first quarter of the fiscal year 2023, showing that the hot sales of GPUs drove the growth of revenue, and the two-pillar businesses of gaming and data center achieved record results. While revenue beat analysts’ expectations, net profit fell short of expectations, and revenue in the fiscal second quarter is expected to fall by $500 million due to the coronavirus and geopolitical impacts.

NVIDIA Ampere A100

According to Wccftech, Nvidia Chief Financial Officer (CFO) Colette Kress said that Nvidia GPU inventory costs have risen at present, and it needs to deal with complex supply chain issues and difficult semiconductor industry issues. Due to longer lead times in the supply chain and the impact of shortages, Nvidia has more than doubled its long-term purchases amid heightened uncertainty, which also increases the risk of excess inventory.

In fact, after entering 2022, the supply of the graphics card market has stabilized, and the price has also dropped significantly. The supply of GeForce RTX 30 series graphics cards has gradually normalized. Nvidia, which has stockpiled too much in the early stage, has increased inventory pressure, and its partners have recently begun to cut prices and destock to reduce operating risks. However, due to the long-term shortage and premium in the past two years, coupled with the upcoming release of NVIDIA GeForce RTX 40 series graphics cards, some customers have declined in interest and chose to hold the currency for purchase, making the market oversupply possible.

It is reported that Nvidia is considering delaying the launch of the new generation of GeForce RTX 40 series in order to help partners digest the inventory as much as possible.