Newegg Shuffle Program Returns as NVIDIA GeForce RTX 50 Series GPUs and Newly Launched RTX 5070 Ti Sell Out in Record Time: “Unprecedented Demand”

Riccochet said:
It's not a failure to compete. It's Nvidia's failure to produce.
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No, I think Dan is right. I think nVidia's "failure to produce" is a direct result of them knowing that you will pretty much pay anything for their latest product, and you will wait however long it takes them to getting around to making them - because you aren't going anywhere else.

They are certainly prioritizing data center production right now - and I don't fault them for that at all. But they have no reason to do anything on the consumer market at all, other than what they are currently doing. They know you will just get in line and join those Shuffles and pay those scalpers for whatever they drizzle out, because no other product comes close enough right now to make them lose market share.

The only thing that would really scare nVidia would be a big dump in market share - because that would hit their stock price: investors would think the sky is falling and start dumping the stock. So long as that doesn't happen - they don't really care about selling the GPUs to a consumer market; they would much rather those go to data centers for 10-100x the margin. But it's all about keeping the stock price pumped up, so anything that generates hype and gets clicks and spins the message that nVidia is unbelievably hot and the sky is the limit - and gamers can certainly throw out a lot of hype.
 
Brian_B said:
hey know you will just get in line and join those Shuffles and pay those scalpers for whatever they drizzle out, because no other product comes close enough right now to make them lose market share.
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You have got to sell something if you want to keep market share, if 4000 series is out of production you are not going to sell those anymore and a couple thousand 5000 seris a month is not going to sustain the bottom line even if data center stuff is making them multiples of gaming, they need the gaming segment as intro in the ecosystem to the rest.

Beeing wanted is one thing, but in the US the only ones actually getting something out of it are the scalpers and maybe the AIB's not Nvidia and over here, I can choose out of 10 different 5080's that are in stock but I'll be damned if I pay double the MSRP
 
I agree with Brian on this. The thing is that NV has already stated that the consumer market is only a very small percentage of their total revenue and they're the only game in town when it comes to a top-end GPU. It's shame that AMD bowed out there and I get it that they couldn't get manufacturing costs down low enough to reach a profit margin where as NV is only competing with itself. Stuff sells out then so be it, they can raise prices even further and won't stop until there's real jeopardy to sales and inventory sitting. I expect them to have concerns at the mid-tier level with AMD and Intel competing there but Jensen could care less about the top tier and probably won't until those cards cost $3K-$4k and stop selling.
 
Denpepe said:
You have got to sell something if you want to keep market share
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This part is true. The sad part is - nVidia is relying on their older sales to keep that Marketshare.

They know all the people with 1060's and 2070's and what not will eventually upgrade, and that they will wait until they can get another nVidia. So long as they don't jump to another brand - nVidia's market share does not decline.

If people do start buying AMD or Intel cards in droves - significant enough to move market share - I can guarantee that nVidia's supply problem gets solved almost over night. And it won't be 5090's on the shelf; it will be the sudden appearance of a new sub $400 GPU, and maybe even a sub-$300 model - because those are the markets that are much larger volume.

For nVidia - it's not only about the margin/profit on the cards at this point. They have gotten so big, there's a reputation to uphold. And anything that threatens that reputation threatens the stock price. Right now, nVidia is pulling in ~$10B in revenue a year on gaming products. But they have a market cap of around $3T. A 1% hit on the share price due to loss of investor confidence hurts them more than losing the entire gaming segment right now.
 
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Brian_B said:
This part is true. The sad part is - nVidia is relying on their older sales to keep that Marketshare.

They know all the people with 1060's and 2070's and what not will eventually upgrade, and that they will wait until they can get another nVidia. So long as they don't jump to another brand - nVidia's market share does not decline.

If people do start buying AMD or Intel cards in droves - significant enough to move market share - I can guarantee that nVidia's supply problem gets solved almost over night. And it won't be 5090's on the shelf; it will be the sudden appearance of a new sub $400 GPU, and maybe even a sub-$300 model - because those are the markets that are much larger volume.

For nVidia - it's not only about the margin/profit on the cards at this point. They have gotten so big, there's a reputation to uphold. And anything that threatens that reputation threatens the stock price. Right now, nVidia is pulling in ~$10B in revenue a year on gaming products. But they have a market cap of around $3T. A 1% hit on the share price due to loss of investor confidence hurts them more than losing the entire gaming segment right now.
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I thought that their portion of market for Gaming was 2.5 billion. Not even 5 billion. And their 'valuation' is almost completely derived from sentiment. AI is a nice driver of hardware purchases... just like bitcoin mining was before that. BUT bitcoin mining let them focus on those computational heavy workloads so when AI really hit they were effectively the only game in town.

Now everyone else is playing catchup. This kind of success would fit for someone who had access to time traveler data. ;) I wonder what Nvidia's next big move will be. Buying Intel? Buying some Island and declaring themselves an independent nation and applying to have extraterritoriality on all corporate 'national' holdings?
 
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