Nvidia's graphics card shipments for 2022 could drop dramatically, at least if a new prediction is accurate.
This comes from a DigiTimes report (opens in a new tab) which states that based on forecasts from Taiwanese graphics card vendors, Nvidia's shipments for this year are expected to drop by 40-50%.
DigiTimes notes that this will mean that the amount of money raised by Team Green will also drop significantly, or even, as the report says, revenue is expected to drop at a "rate beyond imagination," which sounds pretty dire. .
This is all due to the collapse of cryptocurrencies and a general post-pandemic weakening in demand for desktop GPUs.
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This prediction for Nvidia aligns with the company's recent fiscal results, which showed a sharp drop in revenue, and gaming graphics cards have been hit hard, with sales down 33% year-over-year. So the rest of 2022 with shipment declines of 40%, or possibly more, is not an incredible scenario; although of course you have to be very careful with predictions like this one from DigiTimes. Obviously, these are just guesses as to what's going on with Nvidia, and things may turn out differently.
That said, looking at the current economic climate, which is seriously precarious on multiple fronts, it's not hard to imagine that the rest of 2022 will be rough terrain for Team Green. As inflation and cost-of-living increases hit consumers and heap misery on 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 lowered prices to offset what Team Green described as a "significant" drop in sales projections for the fiscal second quarter, and as we've already said, we anticipate more price drops to come. on current generation Ampere GPUs.
Supposedly, there's still excess RTX 3000 stock to clear ahead of the release of next-gen Lovelace graphics cards (and those new GPUs are taking much of the remaining momentum from current-gen sales). And this prediction of potential new weakness for Nvidia through the remainder of 2022 - if the company really experiences a drop in revenue at an "unimaginable" rate - could reinforce the need to drive new RTX 3000 sales through further discounts.
After all, it's crucial that Nvidia's graphics card manufacturing partners are able to get rid of Ampere's overstock before the RTX 4000 GPUs can fully launch (and if that stock clearance doesn't happen on time, we might even see everything but the RTX 4090 delayed until 2023, as the rumor has already suggested).
Nvidia is not the only company affected by the current economic difficulties, of course. The DigiTimes report also states that AMD and Intel now have a grimmer outlook for shipping and revenue projections for this year. Intel expects a revenue drop of between €8 billion and €11 billion and a 10% drop in PC sales from 2021.
AMD expects shipments to fall about 15%, but third-quarter revenue is still expected to rise slightly, putting it in a better position than Intel, after taking market share from Team Blue in server processors and embedded processors during the month. second quarter, in which Team Red's revenue grew massively (by 70%, no less).
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Via Tom's Hardware(Opens in a new tab)