How many 4080/4090 owners plan to upgrade to a respective 50 series when available?

[HockeyJon]

Given the trend in transistor pricing, margins need to go up in anticipation of future costs going up.

Net margin for Nvidia is reported at 42%. To be fair, they could probably run at 25% net margin like notoriously expensive device maker Apple does and be fine if they had to and still be fine...

...they just don't have to, because the consumer is willing to pay their prices. Nvidia is under no pressure to run at lower margins, so why would they? We can't complain about price creep when we pay it anyway.

That said, I don't think the gaming/consumer market has much pricing power anymore. Considering what Nvidia is selling H100s for, my guess is they do what they can to maintain their market share in gaming (which is still an $8 billion market for them, so sizeable), but you're going to pay what they tell you to pay. Don't want to pay it? No problem, they'll just throttle supply and redirect more to AI applications.

But yes, you're right. There are two factors here, because like Nvidia, TSMC is also taking advantage of their pricing power. Want 3nm? Where else are you going to go? Pay up.

 

[LukeTbk]

AMD will only compete in the mainstream while I'm saying maybe they can compete with a 5080

And If AMD launch a what they estimate to be a 5080 level card for say Q3 2024 a la ready say mid-late October and the 5090-5080 launch only January 2025, that would not feel at launch like they do not compete at the high end.

AMD would have the most powerful card on the market by say 15% for months, it could hurry Nvidia launch if they do that.

Lot of rumours seem to tend that what they will launch will be really well priced to make a bit higher than 7900xt type of cards, where the 5070 should be (and if it is launch 4-5 full months in advance, not bad at all), but it is not like the track record of AMD gpus performance pre-launch prediction have been great lately.

 

[WilyKit]

Their margins are inflated from their professional product stack, not gaming.

Source?

 

[LukeTbk]

Source?

I would imagine it is mostly pro but also gaming, at least compared to the expected Ampere margin for the product stack above the 4060.



$700 2020 dollars are around $830 now. Many 4070TI are being sold around that price, a 300mm-192 bits card vs the 3080 was 628mm-320bits at that adjusted for inflation price point, must be a much cheaper die to make.

That said how much more than expected they achieved to sale die to AIBs after the first contracts, once the crypto started... it is not like we could find $700 3080 around, maybe they achieve to push price quite high in 2021-first half of 2022

 

[WilyKit]

I would imagine it is mostly pro but also gaming, at least compared to the expected Ampere margin for the product stack above the 4060.



$700 2020 dollars are around $830 now. Many 4070TI are being sold around that price, a 300mm-192 bits card, the 3080 was 628mm-320bits at that adjusted for inflation price point.

That said how much more than expected they achieved to sale die to AIBs after the first contracts, once the crypto started... it is not like we could find $700 3080 around, maybe they achieve to push price quite high in 2021-first half of 2022

I have no doubt their margins stem from both consumer and commercial products. I also have no doubt their margins are more inflated on the professional side. I have no problems with profits and companies making money. I'm a capitalist and that's what everyone should strive for, but pretending nVidia is merely passing on costs to us and only padding their professional stack is laughable so when such a claim is made, I'd like to know where they pulled that data.

 

[DooKey]

I have no doubt their margins stem from both consumer and commercial products. I also have no doubt their margins are more inflated on the professional side. I have no problems with profits and companies making money. I'm a capitalist and that's what everyone should strive for, but pretending nVidia is merely passing on costs to us and only padding their professional stack is laughable so when such a claim is made, I'd like to know where they pulled that data.

No one is saying NV is doing us a favor by only having high margins on professional cards. However, there is no doubt the margin is much higher on professional cards. They make good margin on gaming, but it's nowhere near professional/AI card margins. IMO.

 

[MistaSparkul]

And If AMD launch a what they estimate to be a 5080 level card for say Q3 2024 a la ready say mid-late October and the 5090-5080 launch only January 2025, that would not feel at launch like they do not compete at the high end.

AMD would have the most powerful card on the market by say 15% for months, it could hurry Nvidia launch if they do that.

Lot of rumours seem to tend that what they will launch will be really well priced to make a bit higher than 7900xt type of cards, where the 5070 should be (and if it is launch 4-5 full months in advance, not bad at all), but it is not like the track record of AMD gpus performance pre-launch prediction have been great lately.

The last time AMD has launched a new gen GPU before Nvidia did was over 10 years ago with the HD 7000 series. Every single gen after that AMD has always launched their GPU only AFTER Nvidia launched theirs first so I expect that trend to continue. AMD won't bother releasing anything new until Nvidia goes first.

 

[WilyKit]

No one is saying NV is doing us a favor by only having high margins on professional cards. However, there is no doubt the margin is much higher on professional cards. They make good margin on gaming, but it's nowhere near professional/AI card margins. IMO.

I never said they’re doing anyone favors. I also never said margins weren’t higher on professional cards