"Profit per Gigabyte" – NVIDIA's Strategy for "Survival" in the Memory Crisis
In addition to the previously discussed 20% supply cut, analysts and insiders have revealed NVIDIA's internal logic for 2026. The company now evaluates its products not by chip performance, but by the Profit per GB metric. In a situation where GDDR7 memory has become a scarce and expensive resource, NVIDIA allocates it to where each spent gigabyte generates more revenue.
- For the base RTX 5060 (8 GB) at $300, the revenue is approximately $37.5 per 1 GB.
- For the RTX 5060 Ti (8 GB) at $400, the revenue increases to $50 per 1 GB.
- Result: It's more profitable for NVIDIA to produce the Ti version, as with the same memory costs, it gets more revenue per card.
Cards like the RTX 5070 Ti and RTX 5060 Ti 16 GB use as much memory as the RTX 5080. However, the 5080 sells for significantly more, ensuring maximum Profit per GB in the 16-gigabyte solution segment. This is precisely why the production of lower-tier 16 GB models is being cut in favor of the flagships.