Sunday, April 16, 2023

NVIDIA wary of ramping up RTX 4070 Ada Lovelace graphics card production

NVIDIA wary of ramping up RTX 4070 Ada Lovelace graphics card production thumbnail

Technology

technology The RTX 4070 (image: NVIDIA)
The RTX 4070 (image: NVIDIA)

NVDIA has reportedly slammed the brakes on a scheduled production increase of its new midrange RTX 4070 graphics card priced at just US$599. The US customers are apparently reluctant to upgrade their GPUs in these uncertain times, just as the computer gaming industry marks huge inventory buildup.

NVIDIA unveiled its cheapest 4-series graphics card so far – the GeForce RTX 4070 – to great fanfare the other day, saying that it is the most affordable gateway to its new Ada Lovelace architecture. It was not far off the mark as, at an MSRP price of US$599, the RTX 4070 cards give access to DLSS3 rendering, real-time ray tracing, and the power-sipping Ada Lovelace.

Even at this affordable price level, however, NVIDIA is reportedly wary of fulfilling the RTX 4070 graphics card orders that it prepared its suppliers for, tip industry insiders. There have reportedly been ominous sign of inventory build-up in the gaming market, while American customers are demonstrating tepid interest towards NVIDIA’s new GPU wares at the moment.

Thus, instead of initiating the scheduled production ramp-up for the second half of the year, NVIDIA is biding its time with orders towards its suppliers like the QC burn-in testers from KYEC. They have recently started receiving some rush orders indicating that there might finally be some inventory drawdown, but those have mainly been for display drivers and peripheral chips after multiple months of sales of existing stock.

Recently, Samsung announced unprecedented 20% cut in memory production, aiming to stabilize the other chip market where clients brought demand forward during the pandemic-induced supply chain challenges. The quasi-recession brought on by the Fed’s rising interest rates, on the other hand, is now causing a delay in the purchase of big-ticket items, too, creating a perfect storm that saw Apple’s pricey MacBook sales slump 40% last quarter.

NVIDIA is apparently taking it slow with the RTX 4070 production boost, too, before it can obtain a full market demand picture some time at the end of the first half when the quarterly sales numbers are in.

Gigabyte GeForce RTX 4070 Ti Gaming OC 12GB Graphics Card on Amazon

Daniel Zlatev, 2023-04-15 (Update: 2023-04-15)

https://www.notebookcheck.net/NVIDIA-wary-of-ramping-up-RTX-4070-Ada-Lovelace-graphics-card-production.707764.0.html, NotebookCheck
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source https://ihomenews.com/nvidia-wary-of-ramping-up-rtx-4070-ada-lovelace-graphics-card-production/

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