It was during a conference call to comment on his company’s second quarter results that NVIDIA’s CEO confirmed that the next-generation GPUs, the GeForce RTX 40 series, would be arriving very soon. Bypassing the tough questions about the drop in revenue with a nice spin, Jensen simply explained that this situation was almost “wanted” by NVIDIA. The company’s strategy is to lower the prices of the current generation of cards to allow its partners to get rid of excess inventory to make room for the next generation of products. For Jensen Huang, the end of the year will be really interesting. He doesn’t hesitate to say that the next-generation graphics cards and the new GPU architecture will be really exciting. 
The transcript of the exchange with Nvidia’s CEO
Our strategy is to reduce sales – reduce sales this quarter, next quarter to allow the channel inventory to correct. Obviously, we’re nowhere near the highs and the macro economic situation has deteriorated significantly. And so our first strategy is to reduce sales over the next two quarters to correct channel inventory. We also have programs in place to price position our current products to prepare for next-generation products.
Ampere is the most popular GPU we have ever created. It’s in the top 15 most popular gaming GPUs on Steam. And it’s still the best GPU in the world, and it’s going to be very successful for a while. However, we have an exciting new generation coming up and it’s going to add to that. And so we’ve made two decisions. We have reduced sales to allow the channel inventory to correct itself and we have put programs in place with our partners to price position products in the channel for our next generation.
We expect all of this to put us on track to be in good shape for next year. Okay? So that’s our game plan going forward.
Jensen Huang (Second quarter 2023 earnings call)
