Falling demand for hardware hits TSMC as Nvidia, AMD, others slash orders

[Kwesley]

No worries - just my stream of consciousness why these companies building so many new plants in a boom and bust like industry - see Dram/memory for even more dramatic price swings - new one in Europe , new one in Texas etc .
On the face of it for supply doesn't make sense

Hey no worries brother!

 

[mbrowne5061]

We will soon see the discounts the Nvidia CEO at one point said it wouldn't happen....lol

I wish... but I am pretty sure they will release the 5000 series GPUs (at prices more in-line with the MSRPs of the 1000 & 3000 series), before they discount the 4000 series. nVidia would rather 'claim' that they made the next gen cheaper before they admit to their shareholders that they priced this generation wrong.

 

[Paul1979]

To understand the magnitude, Nvidia shares were $300+ on January 2022.
Now they are $146 each in January 2023.
Similarly, AMD fell from $150 to $65.
This is an massive decrease and doesn't even look like it has bottomed out yet I.e it's likely to fall farther down.

Point is, whether it's Red or Green both are just greedy companies who got carried away by buoyant market and started thinking they can charge whatever they want hence the nonsensical generation of Graphics Cards.
On social media people tend to post their high end machines to show off, creating the illusion that everyone is buying these overpriced products but reality is not consonant to this illusion.

Keep voting with your wallets and the CEOs themselves will change if they don't learn the lesson soon.

That's basically it, these companies got too greedy that they thought they can charge whatever they want and we'll keep buying, sooner or later, it was bound to come to an end because there is only so much money around, AMD and Nvidia as well as many other tech companies don't seem to have got the message yet and I wonder how much stock is going to have to pile up before it dawns on them that they have to do some major price slashing to get custom back.

With any luck, this drags on throughout this year to really hit these companies hard, it's the only way they will wake up and come down to earth with how they price their goods, until then, they are way overpriced, the market conditions are not great with the state of the economy and even thought that will get better in time, I don't think demand will for these gpu's at the current price point.