Tech

NVIDIA expects graphics prices to continue to fall in the remainder of 2022

The current economic crisis, derived in large part from the invasion of Ukraine by Russia, has led us to a context in which the price of energy has skyrocketed, so much so that mining Ethereum has ceased to be profitable for many. With cryptocurrency mining having lost its appeal, it is expected that the price of dedicated graphics will continue to fall at least in the remainder of 2022something that has been confirmed by Colette Kress, chief financial officer of NVIDIA.

In a talk given at the Goldman Sachs 2022 Communacopia and Technology Conference, Kress said it will take a couple of quarters for the market to return to normal. To this has been added his estimate that prices and inventory should begin to normalize thanks to the commercialization of the graphics generation that is falling, the RTX 4000 if we see the company for which he works.

Responding to several questions from Toshiya Hari, a Goldman Sachs employee, Colette Kress explained that NVIDIA expects the market to start normalizing by the end of the fourth quarter of 2022. The green giant’s finance manager has also said that prices probably be somewhat lower in the short term.

the reason why prices could remain low in the short term due to the large amount of existing RTX 3000 (Ampere) stock. For a long time, users have had a hard time renewing the graphics, a situation that has pushed them to have to settle for the low range. NVIDIA expects prices go back as RTX 4000 (Ada Lovelace) consolidates, and may even be somewhat above average in the future.

Seam survey of August 2022.

With a mining of cryptocurrencies that seems to have been quite damaged by the increase in energy prices, graphics manufacturers have no choice but to return to their traditional markets if they want to sell, which, together with the economic crisis, should become a containment of prices, but seeing the complex context in which we live, who knows where things are going to turn out in the end.

However, and changing the subject, users may not only have to demand more powerful hardware and reasonable prices, but also greater efforts by developers when it comes to taking advantage of it. And don’t misunderstand, since many users probably see the opportunity at the present time to be able to renew, for example, from Pascal or Turing models without support for ray tracing.

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