[News] NVIDIA Reportedly Plans RTX 50 Series Price Cut in China This Month amid Weak Sales

NVIDIA is reportedly facing weak demand and excess inventory for its RTX 50 series GPUs, prompting anticipated price cuts in China and recent reductions in Europe (e.g., RTX 5090 down over 4%). Concurrently, the company is expected to launch a lower-spec GeForce RTX 5090DD in China with reduced VRAM to clear existing inventory and offer a competitive price. This market adjustment occurs amidst increased regulatory scrutiny in China, as the Cyberspace Administration of China recently summoned NVIDIA to address potential security risks and backdoors in its H20 chips.

Analysis

NVIDIA is reportedly confronting significant market headwinds for its RTX 50 series GPUs, characterized by weak sales performance and excess inventory levels. This has prompted reactive pricing strategies, including price reductions of over 4% already implemented in the European market for key models like the RTX 5090 (from EUR 2,329 to 2,229) and anticipated cuts in China. To accelerate the clearance of existing inventory, the company is also rumored to be launching a new, lower-specification model, the GeForce RTX 5090DD, in China this August. This variant is expected to feature downgraded VRAM specifications, potentially leading to a double-digit performance decline compared to the original RTX 5090, and may be introduced at a competitive price point between USD 1,200 and 1,500. Compounding these consumer market challenges, NVIDIA faces mounting regulatory pressure in China. The Cyberspace Administration of China (CAC) summoned the company on July 31, 2025, demanding an explanation for potential security risks in its H20 data center chips, signaling a material geopolitical and regulatory risk to its broader Chinese operations.

Key Decisions for Investors

• Investors should anticipate pressure on NVIDIA's gaming segment revenue and gross margins due to the impending price cuts and the introduction of a lower-spec RTX 5090DD in the key Chinese market.
• The regulatory summons by China's CAC regarding H20 chips introduces a significant geopolitical risk that could impact data center revenue streams, warranting a higher risk premium on China-exposed operations.
• Monitor channel inventory levels and sales data for the RTX 50 series over the next quarter to gauge whether these strategic price and product adjustments are successfully resolving the demand-supply imbalance or if they signal a more persistent downturn in consumer GPU demand.