Quote:NVIDIA's stock value has been falling precipitously in the last several months. We reported in December that the company lost some 48.8% in value between October and December, moving from an all-time peak of $289.36 on October 1st, to just under $149 on December 14th. At the time, excess inventories were the cause, alongside a less than glamorous reception to their new RTX series of graphics cards. Now? NVIDIA cites "deteriorating macroeconomic conditions, particularly in China" as harming demand for their gaming GPUs. But this now comes alongside a its datacenter business also falling short of expectations - that's two of NVIDIA's most lucrative markets being put towards the red, or at least, with lower than expected income revenues.

Quote:It’s notable Nvidia would straightforwardly admit that it may have overpriced Turing in the eyes of customers. Typically, the more words a company spends on a topic, the more important that issue is to the overall state of affairs. The implication here is that Turing demand, more than macroeconomic weakness in China, may have impacted GPU sales in the consumer space. While Nvidia suggested it enjoyed a strong Turing launch cycle on its Q3 2018 conference call, it’s possible that the initial surge of pent-up demand wasn’t sustained over the full quarter. It’s also possible, given the size of the Chinese market, that Nvidia’s Turing sales were particularly weak in that space (though one would expect the company to explicitly link weak Turing demand to the Chinese market in particular if this was so).
...
Technologically speaking, not much has changed for Nvidia in the past 30 days. It still maintains a lock on the high-end GPU market (we’ll have to wait a little while longer to find out if Radeon VII will challenge the RTX 2080 in this space) and its still the overwhelming favorite in HPC, AI, ML, and other professional GPU applications. AMD and Intel both have ambitions in these spaces, but Intel’s GPU won’t even be in-market until 2020. If Turing’s price is weighing on its sales, Nvidia has an option: Cut prices. Trimming price on the RTX 2070 and 2080 would undoubtedly boost sales of these GPUs and ameliorate any sales declines based on cost.