Computer

Mining chaos: AMD and NVIDIA GPU prices will fall in March

Last week we saw the report from the beginning of this month of February where there was an interesting decrease in the price of graphics cards, but we warned that this drop could be a mirage, since Ethereum was rising in price again. Well, there are new signs and rumors about what could happen in just a month, and it is that the price seems to plummet even more in March. What are the new factors affecting this new GPU price drop?

Above all, calm and calm, because we are talking about a sector so volatile that as soon as a value with more profitability or is safer than a cryptocurrency as sought after as Ethereum, it loses value very quickly. In the same way, you can recover said value without a doubt, but the current scenario seems that it will finally play in favor of the user and much less against the miner.

The Great Depression is Coming: GPU Prices Drop

The rise in interest rates that Europe is preparing and that is already taking place in the US seems to be scaring away big capital from the investment sector. We have been without stock of GPUs as such for a year and a half and now that it is replenished it turns out that prices are still through the roof, but not for long.

The increase in interest rates attracts these investors for the peace of mind it gives them in the face of inflation and that is pulling the price of Ethereum to the ground. Even more so when we know that the working model for this cryptocurrency is going to change in a few months, so everything seems like the prelude to a disaster.

Is it a coincidence that Intel is going to launch its GPUs for the second quarter and the prices of AMD and NVIDIA are going to fall? Obviously not, the blue team is going to attack the weakest point of both companies with a solid stock strategy according to rumors, so the two big ones have to react and the manufacturers are getting their act together.

Improve supply and borders

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On the other hand there are several factors that could also explain what is about to happen outside of cryptocurrency speculation. In the first place, the borders are opening their doors due to the fall of the virus and mass vaccination, this is speeding up the shipping of container ships from Asia, which is gradually reducing the price.

On the other hand, there is the fact that TMSC and Samsung are seeing results in the expansion of their facilities and the level of wafers that they can offer per day, which translates into a highest number of chips per hour and therefore there are more GPUs to ship.

Finally, the supply of rare earths is improving, so the chain of chips, substrates and electronic components is beginning to return to normal, although there is a lot of controversy here as we saw last week. It seems that there are groups of companies that are resuming the flight and others are with orders and deadlines of up to 99 weeks.

Finally, there is a new date on the horizon for NVIDIA Ada Lovelace: September. So manufacturers, wholesalers/retailers and stores have to empty stock at a forced march since now there will be the paradox that the increase in production without the consequent drop in price at MSRP will make it a problem to sell new cards when the miners flood the second-hand markets.

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