![]() Well, it's not hard to fathom if you have shareholders, and Nvidia has millions of them that its board is answerable to. How do you just pivot away from not just your core business model, but your core product? ![]() Graphics card sales make up more than 80% of Nvidia's revenue, with most of those being consumer graphics cards. Usually I get bewildered looks when I do, and I totally understand that. I've said a number of times now that with the rise of generative AI, the Nvidia GeForce GPU is likely in its final few generations. Will Nvidia eventually pivot to AI hardware entirely? The kind of stuff that can save businesses a lot of time and expense, so the generative AI boom we're seeing now is much more likely to be enduring in the long term as everyone expects demand for these models to only increase from here. Unfortunately for gamers, unlike the cryptobubble (which produced nothing of real value), generative AI actually makes stuff. These are the chips that are in demand right now, and with companies like Google and Amazon coming in with deep pockets and an essentially insatiable need for more advanced GPUs, Nvidia can effectively name its price. Specifically, Nvidia was pivoting itself towards producing more Hopper chips instead, and these are the chips that power datacenters and generative AI networks and models that power ChatGPT, Midjourney, and others. With sales of its GPUs falling way below expectations and retailers apparently ticked off that they now have plenty of GPU stock taking up warehouse space, slowing production of new consumer GPU stock doesn't make much sense.īut there's something else at play here, according to the news reports. Last week, news came down that Nvidia had essentially put its Lovelace GPUs on ice, which shouldn't surprise anyone considering that there is still a lot of stock of Nvidia graphics cards out there, with a lot of cards even getting some pretty great graphics card deals from retailers - something that was unheard of last generation.
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