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NVIDIA Shares Slip on RTX Family Sales

Nvidia’s new RTX series made news all over and raised expectations for the brand long before it was released. Gamers were excited and miners were hopeful. Everyone had an opinion on launch dates, apparent benchmarks were “leaked” and people were just about to throw punches about misinformation and opinions being spread as fact. After launch though, it seems like Nvidia might have made a bit of a mistake.

The cards certainly didn’t live up to the hype. We were all excited to see the actual performance of the cards that finally broke the GTX-naming cycle and from the internet we pulled information, how wrong it might even have been, that showed a “50% increase in performance”. Gamers were expecting almost unrealistic increases in framerates which would have been extremely welcoming, but Nvidia failed to deliver.

The launch card, the RTX 2080, launched with a massive price tag, specially in South Africa and when it was revealed that performance is only marginally higher than the last flagship (GTX 1080Ti), hearts sank. Yes, it’s more powerful, but at $500 more than the 1080Ti, is it worth it? People have been asking this question since launch, and it’s starting to show. Nvidia’s share prices have been slipping lately, and while it’s already slightly recovering after the bigger dip, the latest price still is 1.52% in the red.

We’re hoping the later drivers and updates will fix this, or maybe the prices of these cards will come down, or maybe the later RTX cards will turn it around for this new “family” of cards, but for now I’m not too excited. At the current exchange rate it looks like the RTX series of cards are a pipe dream for the budget gamer, and will remain as such for a while still.

nvidia-rtx-share-price-drop-01.jpg
 
Last edited:
Wynand Meijer

Comments

Gouhan

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#2
There are plenty of market dynamics that determine where a GPU ends up and if it's a success or not.
The stock market is not where you want to be looking. From the stock price movement I'd not judge the validity of a product or component.

On August 1st stock price close was $246 per share and on the last day of that month it was $280.
Nothing happened in August of significance that's related to any product they have (Nvidia looks at itself as a product company which I believe is a mistake which may cost them in future).

Three things are happening right now in the market and with nvidia.
1. NVIDIA has been asking for more money for its GPU+Memory from it's 'partners' (More like underlings as there's zero negotiating with NVIDIA :( ) and in turn they ask for more from us the end users.

2. RTX cost a fortune to develop and that cost is obviously going to be paid by recipients of the GPU technology, which is you and even the enterprise/HPC space clients. The difference is these markets can almost always justify the cost in what they gain in compute capability, but you and I and other joe soap's use GPU power and technology in a rather limited scope. That is to say, what we get for RTX vs the cost is not balanced at all versus what their other clients get from RTX technology.

3. GDDR6 has a single vendor (micron)right now and only a single client for high speed GDDR6 as well (NVIDIA). That has a cost implication, be it small or big, this situation will increase prices, lowering sales volumes etc. (Until this isn't an issue at all)

4. There's absolutely zero relevant competition for NVIDIA and that literally allows them to dictate the pricing for X amount of GPU computing power. (Per mm2 and per watt their processors are by far the most powerful available anywhere today)

5. The product (another reason why perhaps being a product company isn't conducive for success for the GeForce cards) can and should be contextualized and not looked at a single all purpose and all person's go to solution. Which is to say we must separate the technology from the business and commercial aspect of it.

The long and the short is that yes we are getting screwed with prices and that sucks However whose fault it is entirely and why is a lot more detailed. Regardless of that answer, it won't make out GPUs cheaper. The most direct way to may them cheaper is for NVIDIA to have better competition.
Be it one is an AMD GPU user or NVIDIA GPU user, having both of them at each other's heels helps with pricing (for example GDDR6 pricing will decrease as a result, which makes the GPUs cheaper). Hopefully Q1 2019 sees some price adjustments for NVIDIA's GPUs courtesy of AMD's updated or new GPU lineup. Situation above and more may not have changed but at least we will have an option which has to make things better for end users.
 

Toxxyc

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#3
I agree, yes. Specifically on number 4 - I think it might have hurt them in this regard. The RTX series was released not because they had to, but because they wanted to show the world "because we can". I just think that the general perception was going to be "better", and it bit them in the ass a little bit. Business and product disconnectivity aside, they definitely have an impact on each other.
 

SILTECH786

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#4
And the great people still buy Nvidia shares why because it is a BLUE CHIP CO forbes 500 market index ...no other competitor can touch this brand in a hurry
 

adamr

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#5
The rtx card is disappointing ... Firstly the performance over previous gen is marginal and nothing to brag about ... Especially when we look at the performance leaps between generations from previous releases of cards.

Secondly ray tracing and dlss is not anywhere to be seen. For industry applications, yes rtx would be welcomed, anything new that cuts down the time to deliver "stuff" to their clients equals money sooner.

The problem lies with (like was said) the Joe soap gamers ... Like most on this forum

There simply is no valid reason right now for anyone to sell their 1080s or 1080tis for a 20 series card. For the most part there will be very little to no perceivable difference in your gaming experience ... The only shallow consolation is knowing you'd have the highest 3d mark scores. We buy GPUs to game ultimately

Regarding ray tracing

The reason it's not available is because the performance hit is massive ... It works we've seen it in a real game and the only plausible reason it ain't patched in is ... performance. There is no other reason. In light of no competition Nvidia can get away doing this ... Have an entire keynote focussing mainly on some new tech and sell cards based on this new tech ... But the cards can't do any of it. Apple did this when they launched the iphone X and showcased amazing portrait modes where the entire background was blacked out making for amazing linkedin photos ... Till today that feature is pretty crap and doesn't work that well. I would not be surprised if tomb Raider gets patched next year for ray tracing ... And a month later they announce 2090 cards showcasing it's impressive ray tracing performance over the 2080 cards ... Introduce the new cards at the same price points the 2080 cards were at and drop those cards to almost half their value ... It's Nvidia and right now they can do what ever the hell they like

What the gaming industry sorely needs is competition in the GPU market. To the extent that companies should form JVs (joint ventures) to be that competition to Nvidias monopoly. AMD is not going to do this on their own ... But maybe a JV between AMD and Tesla can ( a silly example )...

Even if that new company or JV steals 20% / 30% market share that is a hella lot.

When the 1080ti launched at 699 the only reason it did was because Nvidia needed to ensure their dominance of their brand despite the eminent threat of those Vega cards from AMD ... Which wasn't a threat. But this is what competition creates ... Better prices better products for us ...

If no company or companies challenge Nvidia .... It will continue to do what it wants ...

For me I'll wait on the sides and see how this plays out ...
 
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Toxxyc

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#6
A note on ray tracing - it'll probably be left out of the 2060 cards coming up and left exclusively for the 2070 and higher models.
 

SILTECH786

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#7
The rtx card is disappointing ... Firstly the performance over previous gen is marginal and nothing to brag about ... Especially when we look at the performance leaps between generations from previous releases of cards.

Secondly ray tracing and dlss is not anywhere to be seen. For industry applications, yes rtx would be welcomed, anything new that cuts down the time to deliver "stuff" to their clients equals money sooner.

The problem lies with (like was said) the Joe soap gamers ... Like most on this forum

There simply is no valid reason right now for anyone to sell their 1080s or 1080tis for a 20 series card. For the most part there will be very little to no perceivable difference in your gaming experience ... The only shallow consolation is knowing you'd have the highest 3d mark scores. We buy GPUs to game ultimately

Regarding ray tracing

The reason it's not available is because the performance hit is massive ... It works we've seen it in a real game and the only plausible reason it ain't patched in is ... performance. There is no other reason. In light of no competition Nvidia can get away doing this ... Have an entire keynote focussing mainly on some new tech and sell cards based on this new tech ... But the cards can't do any of it. Apple did this when they launched the iphone X and showcased amazing portrait modes where the entire background was blacked out making for amazing linkedin photos ... Till today that feature is pretty crap and doesn't work that well. I would not be surprised if tomb Raider gets patched next year for ray tracing ... And a month later they announce 2090 cards showcasing it's impressive ray tracing performance over the 2080 cards ... Introduce the new cards at the same price points the 2080 cards were at and drop those cards to almost half their value ... It's Nvidia and right now they can do what ever the hell they like

What the gaming industry sorely needs is competition in the GPU market. To the extent that companies should form JVs (joint ventures) to be that competition to Nvidias monopoly. AMD is not going to do this on their own ... But maybe a JV between AMD and Tesla can ( a silly example )... R&D is expensive ... Even if that new company steals 20% / 30% market share that is a hella lot.

When the 1080ti launched at 699 the only reason it did was because Nvidia needed to ensure their dominance of their brand despite the eminent threat of those Vega cards from AMD ... Which wasn't a threat. But this is what competition creates ... Better prices better products for us ...

If no company or companies challenge Nvidia .... It will continue to do what it wants ...

For me I'll wait on the sides and see how this plays out ...
Reading while snacking on LINDT
 
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#12
Like a wise man once said , there really is nothing like a bad graphics card , only a bad price.

Played on the RTX 2080 at Rage and my gosh it is incredible , even without the whole Ray tracing , and DLSS it is a serious power house .
 

Mast3rBlast3r

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#14
What the gaming industry sorely needs is competition in the GPU market. To the extent that companies should form JVs (joint ventures) to be that competition to Nvidias monopoly. AMD is not going to do this on their own ... But maybe a JV between AMD and Tesla can ( a silly example )...
Are we forgetting that AMD is already a merged company? They swallowed another 3-letter company starting in A to become what they are today.
And it helped not a bit at all.

The only way for nVidia to fall is to accidentally be left behind on tech, which would required AMD to actually innovate on GPUs again for once. Like back in the DX10.1 days when nVidia ended up on an outdated DX shader and Red Team owners were smiling all the way.
 

Madala_ZA

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#15
I’m undecided about the 2080Ti (which is uncanny for me). My CUD wants the 2080Ti but I’m struggling to justify the cost to upgrade from my 1080Ti. I know what I wanna do, but I still don’t know what I’m gonna do...
 

SILTECH786

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#16
I’m undecided about the 2080Ti (which is uncanny for me). My CUD wants the 2080Ti but I’m struggling to justify the cost to upgrade from my 1080Ti. I know what I wanna do, but I still don’t know what I’m gonna do...
I can help ease that tension buy the fucking card and throw that 1080ti to the sharks of this OCEAN
 

Presler

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#19
AMD for now cater for the masses. They are for the guy that can't pick up the bill for a top class Nvidia card but still want to game at good settings, or like me, Just don't like Nvidia.

AMD makes good sales because of this and will continue to do so even if Nvidia build something better after RTX or whatever they plan for the future.

Even as an AMD fan, I don't think they can bring anything to the table that can compare with 1080ti/RTX. They need to take a good hard look at how they do things if they want to get to that level soon.
 
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