The price drop is an old story.
NVIDIA Jensen Hwang’s remarks, which claimed that the paradigm of the GPU price has changed, is attracting attention.
After unveiling the new graphics card RTX 4080 and RTX 4090 series, Jensen Hwang insisted on the Q & A session with the media, saying, Moore’s law is over.
Moore’s law was the first hypothesis set by Gordon Moore, CEO of Intel in 1965. At the time, Moore predicted that the continuous development of technology would improve the element of semiconductor chips every two years.
Conversely, the theory is that the price of the chip also gradually falls down and the price falls. In fact, this law has been commonly used in the industry, but it is also a law that has been predicted that it will no longer continue if it reaches the physical limitations that cannot be overcome by technology.
Hwang said, The 12-inch wafer is much more expensive these days. Therefore, the idea that the price of the GPU chip will fall (depending on technology development) is only a story of the past. According to Hwang’s new paradigm, NVIDIA’s existing patterns, which are similar to the initial price of the existing series every two years, are likely to be broken.
However, Hwang’s explanation is that NVIDIA graphics cards provide more value compared to the same price product. Hwang said, This product line, which uses Ada Lover race chipset compared to NVIDIA’s $899 and $1,599 products a year ago or two years ago, is very good. In this 40 series, the price of $899 (1.4 million won in Korea) and $1,599 ($1.92 million in Korea) are set for RTX 4080 16 GB and RTX 4080 12 GB.
Meanwhile, the industry and consumers believe that Nvidia has set a high price of the 40 series to handle the inventory of the existing 30 series. As cryptocurrency mining has been so popular for the past two years, NVIDIA has increased its production accordingly, as demands of 30 series have soared. However, as the cryptocurrency market has fallen rapidly, the increase in supply has not yet been digested in the market.