Tech Gaming Hardware discussion (& Hardware Sales) thread

[avenue94]

Whats the joke about a 1 billion dollar company acting like this. "Now you know why we are a 1.1 billion dollar company".

Its such a small sector of Nvidias overall business that they are penny pinching to this degree. Last thing they want is sending out vouchers to retailers warehousing high quantities of previous generation stock that is in essence a competitor to their current release. Theyve even taken it a step further starting in the 4000 series. By reducing the specs of their X070 and lower cards.

I don't even know what the first paragraph means. Nvidia's gaming business has never done better, whether or not it's good for gamers.

Again in any business with tiered product stacks it makes no sense to sell 2 generations at once. Advances have slowed on the low end but what can you do. They sell well and no one has been able to compete.

 

[KaNesDeath]

I don't even know what the first paragraph means.

Penny pinching to appease investors.

 

[avenue94]

Penny pinching to appease investors.

Again, you'd have to be specific, I don't know what you're referring to exactly. Nvidia isn't particularly unusual as far as the industry goes, and they tend to be less cheap than some of the other companies. It's a vey cheap (commodified) industry.

 

[KaNesDeath]

Again, you'd have to be specific, I don't know what you're referring to exactly. Nvidia isn't particularly unusual as far as the industry goes, and they tend to be less cheap than some of the other companies. It's a vey cheap (commodified) industry.

Profit margin of their general consumer customers need to be brought closer to their enterprise customers.

Costs Nvidia roughly $3,000 per unit to make one of their AI chips. Yet they sell them for $25,000+.

 

[avenue94]

Profit margin of their general consumer customers need to be brought closer to their enterprise customers.

Costs Nvidia roughly $3,000 per unit to make one of their AI chips. Yet they sell them for $25,000+.

Their gaming profit margins are very nice, but roughly in line with what the industry likes to see (50%ish). You're not factoring in the actual other costs of developing GPUs. Again, it's a very commodified space in a commodified industry.

 

[KaNesDeath]

Their gaming profit margins are very nice, but roughly in line with what the industry likes to see (50%ish). You're not factoring in the actual other costs of developing GPUs. Again, it's a very commodified space in a commodified industry.

Theyve blown past 50%. Profits margins are closer to 1,000% in both sectors.

 

[avenue94]

Theyve blown past 50%. Profits margins are closer to 1,000% in both sectors.

How did you graduate high school, let alone make it this far in life, thinking you can have 1,000% profit margin. That would mean for every one dollar in revenue, Nvidia is somehow making $10 profit.

You plainly have next to no financial literacy or industry knowledge.

 

[KaNesDeath]

How did you graduate high school, let alone make it this far in life, thinking you can have 1,000% profit margin. That would mean for every one dollar in revenue, Nvidia is somehow making $10 profit.

You plainly have next to no financial literacy or industry knowledge.

Stock price jumped by 1,500% in five years. X070 MSRP has increased by 100%. X090 since introduction has had its MSRP increased by 33%. Where today the 5090 starts retailing at 25% over MSRP. Average retail price is closer to 50% over MSRP. While Nvidias board partners privately complain about their own tight profit margins to the point of near loss to anyone that listens.

 

[avenue94]

Stock price jumped by 1,500% in five years. X070 MSRP has increased by 100%. X090 since introduction has had its MSRP increased by 33%. Where today the 5090 starts retailing at 25% over MSRP. Average retail price is closer to 50% over MSRP. While Nvidias board partners privately complain about their own tight profit margins to the point of near loss to anyone that listens.

That's cool and all (being a board partner sucks bad) but I'm not the one arguing Nvidia has a 1000% profit margin. Care to elaborate on where you're getting this info and how your shitty math arrived at that?

P.S. You don't seem to understand that the materials are not the only expense, or even the largest expense, for GPUs.

 

[BJ@LW&WW]

Stock price jumped by 1,500% in five years. X070 MSRP has increased by 100%. X090 since introduction has had its MSRP increased by 33%. Where today the 5090 starts retailing at 25% over MSRP. Average retail price is closer to 50% over MSRP. While Nvidias board partners privately complain about their own tight profit margins to the point of near loss to anyone that listens.

practically none of what you said has anything to do with profit margin. youre talking out of your ass about a metric you dont know the definition of.

 

[KaNesDeath]

That's cool and all (being a board partner sucks bad) but I'm not the one arguing Nvidia has a 1000% profit margin. Care to elaborate on where you're getting this info and how your shitty math arrived at that?

P.S. You don't seem to understand that the materials are not the only expense, or even the largest expense, for GPUs.

practically none of what you said has anything to do with profit margin. youre talking out of your ass about a metric you dont know the definition of.

Then feel free to provide some figures instead of lobbing insults.

For i dont see R&D costs at the gamer GPU hardware and software level that mostly predate Covid increasing costs. Where low gamer GPU volume is even being caused by Nvidia prioritizing enterprise fabrication.

 

[avenue94]

Then feel free to provide some figures instead of lobbing insults.

Telling someone they're being dumb for claiming Nvidia has 1,000% profit margin is as much of an insult as calling a flat earther an idiot. Both claims are asinine and should be dismissed out of hand due to their impossibility.

For i dont see R&D costs at the gamer GPU hardware and software level that mostly predate Covid increasing costs. Where low gamer GPU volume is even being caused by Nvidia prioritizing enterprise fabrication.

Nvidia' operating income margin in Q4FY25 was 61%, and gaming margins are worse than datacenter or pro. So margins are closer to 50% to 60% depending on what costs you include. Like I said, I don't think you understand how expensive GPU development and support is.

 

[KaNesDeath]

Telling someone they're being dumb for claiming Nvidia has 1,000% profit margin is as much of an insult as calling a flat earther an idiot. Both claims are asinine and should be dismissed out of hand due to their impossibility.

Then we would be seeing closer to equal valuation margins being applied to Nvidias contracted fabricators and suppliers.

 

[avenue94]

Then we would be seeing closer to equal valuation margins being applied to Nvidias contracted fabricators and suppliers.

Why would we see that? Who are these fabricators and suppliers you refer to? PNY is privately held and TSMC boasts similar margins. Even Intel's consumer products feature similar margins for the most part.

 

[KaNesDeath]

Why would we see that? Who are these fabricators and suppliers you refer to? PNY is privately held and TSMC boasts similar margins. Even Intel's consumer products feature similar margins for the most part.

250% ≠ 1500%.

 

[avenue94]

250% ≠ 1500%.

Again, why would we see identical valuation margins?

 

[BJ@LW&WW]

Then feel free to provide some figures instead of lobbing insults.

For i dont see R&D costs at the gamer GPU hardware and software level that mostly predate Covid increasing costs. Where low gamer GPU volume is even being caused by Nvidia prioritizing enterprise fabrication.

previous poster already clearly stated to you that profit margin cant exceed 100%.

theres a thing called google, and now even AI chat bots. im not here to educate you on something you can find by literally typing two words and hitting enter.

you are voluntarily ignorant. im insulting you because you dserve it.

 

[KaNesDeath]

previous poster already clearly stated to you that profit margin cant exceed 100%.

Proper term i should have been using is 'markup'.

 

[Slobodan]

 

[Madmick]

View attachment 1105011