alt Hacker NewsIf, all else equal, price rises then demand declines. Nobody has an unlimited budget. The higher the price, the fewer people who can maintain their willingness as a buyer. You are in a very unique position if you have never experienced "nope, that's too much money for that, I'm out".
If demand continues to decline then you end up in equilibrium or surplus. The only way to maintain a shortage is to not allow price to rise. Equilibrium is the ideal spot for a business — maximum revenue without having to carry costly inventory.
If you can only manufacture 1,000 widgets per year, and there is demand, then you want to sell all 1,000 at the highest price possible.
If you have the ability to produce infinite widgets, then you produce to maximize the supply/demand curve in Econ 101 and reach that equilibrium spot with the spherical cows.
Nvidia had fixed supply, so of course they want as high a price as possible.