NVIDIA has been making much money off its GeForce RTX 40 series GPUs. Compared to the RTX 30 lineup, Ada Lovelace has ramped up 40% faster, with most sales coming from $699+ products. The GeForce RTX 4070 Ti is priced at $799, the RTX 4080 at $1,199, and the RTX 4090 at $1,599. All three SKUs are notably pricier than their predecessors, with considerably fatter profit margins than before.
Ada has taken us a little longer to move down the stack than typical generation. So for this reason, we’ve got a fair amount of history on the 699 up class of Ada, this is our 40-70 tie and up. And Ada from — in terms of the revenue generated is ramping much faster, 3x that uttering and about 40% faster than Ampere.
Jeff Fisher, NVIDIA SVP
According to Jeff Fisher (NVIDIA SVP), gamers that usually bought budget GPUs (from the $300 to $400 range) now buy higher-end SKUs for over $699, specifically the RTX 4070 Ti. With Ampere, most users bought a GPU for $200 to $300, pricier than their previous products. Ada buyers upped the price by another $300 to $400.
And what we’ve seen today for Ada in this class 699 and up is a $300 to $400 upgrade in mix in the high end. So gamers who are buying our high-end of our Ada are buying from a much lower class of product, which is super exciting for us. Ampere, it wasn’t — it was — I’ll speculate, it was in the $200 to $300 upgrade range. And Turing was probably a bit below that, so we’ve seen an increasing mix of upgrades over time.
Vivek Arya
So just to get it right. So what you’re saying is that people who upgraded to Ampere on an average bought a card that was $200 more expensive. And now those who are upgrading to Ada are buying something that is $300 or $400 more expensive?
Jeff Fisher
Right. Relative to what they had.
Jeff Fisher, NVIDIA SVP
The CAGR of the GeForce Gaming Business has increased by 20% this year as the ASP grew by 10%. In 2023, roughly 44% of GeForce users are leveraging RTX 20, RTX 30, or RTX 40 series GPUs. Of these, 18% are on an RTX 3060 or a faster graphics card.
This leaves much room for potential upgraders to jump from the GTX 1650, GTX 1660, GTX 1060, and even the RTX 2060. The upcoming GeForce RTX 4060 will be the go-to card for most of these gamers, so expect a healthy revenue boost for the GeForce Divison in the coming quarters.
Source: Seeking Alpha
