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Nvidia’s RTX 5000 performance issues put the company’s reputation at risk?

David Prior by David Prior
March 6, 2025
Reading Time: 3 mins read
Nvidia’s RTX 5000 performance issues put the company’s reputation at risk?
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Nvidia Corporation, one of the market leaders in graphics processors and computing accelerators, found itself in a sticky situation. Despite its technological achievements, the company has acknowledged its inability to determine the time frame for solving all issues related to GeForce RTX 5000 graphics cards. Video cards owners continue to face unstable device performance, and manufacturers are still to offer practical solutions. 

The situation is aggravated by Nvidia’s difficulty in releasing the latest graphics card generation. First, the cost of new devices remains exceptionally high, making them inaccessible to many users. Second, there is a shortage in the market, which fuels demand and consumer discontent. Third, there is a risk of melting the power connectors, which threatens the stability and safety of the devices.

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But that’s not all. Some flagship GeForce RTX 5090 graphics cards had fewer rasterization units than was stated in the specifications. This can negatively affect device performance and raise additional questions about quality control during manufacturing.

Problems with video cards and delays in solving technical issues have already begun to affect the company’s financial situation. Nvidia shares started to decline in price before the publication of the earnings report. Investors are concerned that the current difficulties could negatively affect the company’s reputation and market share, especially in the face of increasing competition from AMD.

Even Nvidia’s confident earnings report hasn’t resulted in a significant stock surge as it has in the past. In parallel with the consumer market challenges, the company is experiencing hurdles on the production front. The company’s orders to manufacture chips for computing accelerators require using 77% of all available silicon wafers of the appropriate class. Moreover, Taiwanese sources report that Nvidia’s orders will take up about 70% of TSMC’s chip testing and packaging capacity using the advanced CoWoS-L method.

This packaging technology is critically important for producing Blackwell generation chips, which underpin Nvidia’s latest computing accelerators. Given the growing demand for such chips, TSMC plans to increase its CoWoS-L packaging capacity by 20% every quarter. This would allow the company to process more than 2 million products by the end of the year. However, even such large-scale investments in production facilities may not cover all the demand, especially given the additional orders from participants in the Stargate initiative in the United States.

Nvidia finds itself in a difficult situation where it has to balance solving technical problems in the consumer market and meeting the growing demand for its computing accelerators. On the one hand, the company must fix video card issues as soon as possible to maintain user trust. On the other hand, it needs to ensure sufficient chip production so that accelerators do not miss opportunities in the high-performance computing market. The company’s success will depend on its ability to quickly solve current problems and effectively manage its production facilities in an environment of high competition and growing demand.

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.

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