The shortage of graphics cards is over, prices have finally dropped

The lack of graphics cards seems to be good and really finished. As cryptocurrency miners sell their hardware, the price of GPUs continues to crash.

The price of graphics cards continues to decline. As data collected by our colleagues from The Verge shows, the price of most GPUs collapsed in the retail and second-hand markets.

On eBay, the price of most graphics cards is available divided since January 2022. Between April and June, the rate contracted at 30%. After months of constant shortages, the price of GPUs has finally come close to the manufacturer’s recommended retail price. Note that some AMD and Nvidia cards are sold even below the suggested retail price.

For example, the RTX 3090 is priced at $ 466 below Nvidia’s recommended price, down 60% from January. AMD’s RX 6900 XT has a $ 316 discount on eBay, down 55% since the start of the year.

A year ago, the price of ingredients had already started to decline. The cost of some models has dropped dramatically over the past few weeks. For example, the price of an RTX 3070 card drops to 500 euros a month. However, the prices shown remain higher than Nvidia’s suggested retail price. Despite better overall availability, many AMD and Nvidia SKUs are still untapped.

Also read: $ 15 billion worth of graphic cards, the surge in crypto miners since 2021

To an explosion of GPU demand?

In this context, we can assume that the shortage of graphics cards is ultimately behind us. According to Colette Kress, chief financial officer at Nvidia, the group’s supply chain as well “Almost normalized”. Expected by the company balance between supply and demand continued in the second half of the year.

According to Anshel Sag, financial analyst at Moor Insights & Strategy, the demand for graphic cards is likely to explode. “There has been a lot of demand from players and consumers that has continued over the last two years,” he said. explained Anshel Sag, interviewed by The Verge. The expert believes that inflation and the impending arrival of new generations of cards, such as the RTX 4090, 4080 and 4070, do not dampen the interest of players. For the record, Nvidia will present the new cards in October.

“You have to keep in mind that for most of these consumers, this is their primary source of fun and interaction”lined up the analyst.

However, Nvidia and AMD may have overestimated demand for the next few months. According to a report from Digitimes, the two groups have reduced their graphics card orders from TSMC. In particular, AMD asked TSMC to produce 20,000 smaller discs of semiconductor material in the first quarter of 2023. AMD and Nvidia currently have a large inventory of components in anticipation in the coming months. . Both companies will suffer from second-hand market competition and the lack of interest in mining farms.

The sharp decline in the cost of GPUs is actually due to the collapse of cryptocurrencies. In June, the crypto-asset market suddenly crashed. As the price of Bitcoin dropped below $ 20,000, many ecosystem companies were meeting liquidity problems. Some companies, such as Celsius Network, are on the verge of bankruptcy.

Under these conditions, cryptocurrency miners record a sharp decline in profit. In an attempt to recoup their cost, many of them sell their equipment on the second-hand market. In China, some sites are flooded with ads for used GPUs.

Source:

The Verge

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