GPU, prices are falling. Is the chip crunch about to end?

there The first sign that the chip crisis has eased: The The recent drop in GPU (Graphics Processing Units) prices It could portend a release from the grip of a shortage of microprocessors that has slowed production of smartphones, cars and other devices that now rely on communication and data processing capabilities.

Many chip makers, including Intel Corporation And Qualcomm, is preparing to publish its latest quarterly reports and market analysts will carefully monitor these signals and Macroeconomic factors that may still affect the supply and demand of chipsLike Inflation, which dampens consumer spending, locks down in China Because of the re-emergence of Covid cases, and The war in Ukraine.

Graphics chipset prices lower and lower ‘excellent’

Meanwhile, the decline in graphics chip prices has been studied by Bird Analystswhich has accordingly Nvidia GPU manufacturer’s rating downgraded to ‘Neutral’. So far this year, Nvidia shares are down 31% and that of its rival long 37%, compared to a 22% drop in the Philadelphia Semiconductor Index.

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GPUs are still selling at a premium price, but with a strong downtrend. ‘”Christopher Rowland, an analyst at Susquehanna, said earlier this month The manufacturer’s suggested retail price or recommended price has been reduced to 41% from 77%.

Online hardware newsletter 3DCenterwhich tracks graphics chip prices in Europe, reported that the price of Amd’s Radeon Rx6000 and Nvidia’s GeForce Rtx30, both used for gaming, have fallen. Less than 20% above the recommended rate, compared to 80% at the start of 2022.

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An investigation by the news agency Reuters It found that Nvidia’s GeForce graphics cards remained largely unavailable at retailers like BestBuy and Newegg Commerce, indicating that supply is still less than demand. But Baird analysts have noticed If electronics companies that buy chips expect prices to fall further, they will begin to reduce inventory and purchases And to put more pressure on prices.

GPU demand could also drop due to a modification to the Ethereum cryptocurrency’s work And it is expected For the second half of the year It will reduce the demand for graphics chips for computers used today for cryptocurrency mining.

Impact on other microprocessors

However, the drop in GPU prices does not necessarily affect the entire chip sector.

According to Kinngai Chan, Summit Insights Group AnalystThis led to a decrease in demand from the PC and smartphone markets Lower prices for other chips, such as modern CPUs and some memory chips. There may also be overcapacity from previous generation chips for non-new devices in the second half of this year.

On the contrary, Bank of America He said weaknesses in the cryptocurrency gaming or mining sectors could be Balanced by strong demand for graphics chips in data centers and a reaffirmation of Nvidia’s “buy” rating.

Is there a risk of excess energy?

In this context, the major chip makers, including Intel and fishIt has implemented multi-billion dollar projects to expand production capacity. For Dan Hutcheson, an expert at TechInsights, it’s possible we could end up oversupplying: “Of all the announced investments in mega-factories and forecasts of shortages that will last through 2023-2024, we’ve always said that Risks must be taken into account“.

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