Graphics card prices pulled back sharply, perhaps foreshadowing the global chip drought unexpectedly and quickly falling. Some experts pointed out that the decline began to expand to other chips, this week’s earnings report of the chip maker will be the focus of future observations.
According to the Taiwanese media “MoneyDJ” reported
Reuters reported On Apr.25th,2022 that GPUs are still being sold at a premium to the suggested selling price (MSRP), but the premium is gradually converging. Susquehanna analyst Christopher Rolland noted earlier this month that GPUs sold at a premium of 77 percent over MSRP to 41 percent.
3DCenter tracks graphics card prices in Europe. AMD’s Radeon RX6000 and Nvidia’s GeForce RTX30 series for esports have been on a downward slide, with premiums of 80% at the start of the year and now less than 20%, the site said.
Tristan Gerra, the senior analyst at Baird, said if electronics buyers felt chip prices would continue to fall, they would cut inventories and order fewer chips, which would weigh on chip prices. “It’s a vicious cycle,” Gerra notes.
The market is hotly debated whether the graphics decline will drag down other chips. Kinngai Chan, an analyst at Summit Insights Group, said slowing demand for PCS and smartphones has led to lower prices for advanced processing chips, such as CPUs and some storage. In the second half of this year, he predicts, there may soon be an oversupply of some mature chips. Not everyone agrees with Chan, however, as Bank of America believes demand for graphics cards in data centers remains strong enough to offset sluggish trends in esports and cryptocurrency mining.
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