CFO Colette Kress delivered the opening remarks at NVIDIA’s earnings conference and described the recent stages of the debut of graphics cards based on the Ada Lovelace architecture as exceptionally successful. The GeForce RTX 4090 has been sold out in many markets since mid-October, the GeForce RTX 4080 is already on sale, and in general NVIDIA is ready to offer “many new products” with this gaming architecture.
last promise did already the founder and permanent head of NVIDIA Jensen Huang (Jensen Huang). He emphasized that the bearers of the Ada Lovelace architecture are now positioned in the upper price segment. GeForce RTX 4090 graphics cards have been released in large numbers, but that hasn’t stopped customers from snagging their first batch in minutes, according to NVIDIA’s CEO. In his opinion, the market has received both the GeForce RTX 4090 and the GeForce RTX 4080 very positively, and therefore the management is very excited about this debut. In addition, it proves the strength, resilience and transparency of the gaming market segment, as summarized by the company’s founder.
In response to a question from analysts at a quarterly event, NVIDIA management said the value of its product inventory rose sequentially by $560 million in the third quarter of the current fiscal year. According to the company’s finance director, this increase was only partly due to the need to accumulate a certain amount of storage space, new architectures: Ada Lovelace in the gaming segment and Hopper in the server segment. To a large extent, the inventory growth was also influenced by the network solutions segment, which is mainly served by Mellanox products.
The company had to write down $702 million of inventory, but the bulk of those losses were on the A100 compute accelerators. The latter, as we recall, were intended for use in server systems of Chinese customers, to whom, however, in the third quarter, after the introduction of new US sanctions, the company hastily offered a replacement in the form of an A800 chip, the performance of which is limited at the hardware level and thus enables circumvention of US sanctions. As a result, demand from Chinese customers shifted to new “alternative solutions” and some of the stock of older A100s had to be scrapped. As NVIDIA executives noted at the quarterly event, the negative impact of the sanctions was largely offset in the third quarter by the Chinese market’s introduction of A800 accelerators, which were clearly aligned with new US export control requirements.