It seems like NVIDIA is planning to cut the supply of their RTX 50 series GPUs in the coming months, as the firm wants to limit inventory levels to ensure prices don't drop under MSRP.
NVIDIA To Cut Down RTX 50 Series Production To Keep Inventory Levels Under Control
Well, Team Green's RTX 5000 series SKUs are experiencing what appears to be a "rollercoaster ride" when it comes to inventory levels since they were released, the markets were reporting shortages and inflated prices everywhere. After months of consumers struggling to get their hands on the RTX 50 series GPUs, it is now being reported that NVIDIA has plans to cut-down on the supply to the retail segment (via Gazlog citing Chiphell) by more than 30%, claiming that the demand is now dropping down, and the firm doesn't want the inventory levels to exceed the desired levels.
NVIDIA started the reduction process last month, and it seems that in July, the RTX 50 series supply is slated to drop by more than 30%. The reason behind the decision isn't specific for now; however, based on the retail prices of NVIDIA's RTX 50 series GPUs across the board, it is evident that Team Green doesn't want models to be available at MSRPs, especially the higher-end ones. And, given that NVIDIA has populated the mid-tier segment with its recent 60-class and 50-class releases, the company might find it sensible to start cutting supply from the top-end SKUs.
Regarding where the reduced supply would be compensated towards, NVIDIA might use it to cater to the demand coming from China, for its next-gen GPUs, particularly the RTX 5090D v2, which is said to be the next flagship offering in the region. Moreover, NVIDIA is also preparing for a new AI accelerator for China as well, that would be a Blackwell-based GDDR7 solution, so the focus might have been shifted towards this market segment. For gamers, well it isn't something to rejoice on at all, but NVIDIA has seen a new opportunity, and it is diving right in.
The prices of the RTX 50 series SKUs won't surge immediately, given that it seems like there is enough inventory right now to satisfy the market demand, but overtime, they are likely to increase if the production cut continues as expected.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
Follow Wccftech on Google to get more of our news coverage in your feeds.
