In the middle of the month of May the situation of the graphics card market was unsustainable and bordering on the most grotesque ridicule that one can plan, as if it were a supervillain. But although everything can go for the better, there is also the possibility of the opposite and this is precisely what is going to happen. The GPU market suffers a new setback and this time it will be even tougher than at the beginning of the year.
Manufacturers to reduce supply of NVIDIA RTX GPUs
Although the trend was being downward and the graph showed a prolonged and more or less accelerated decline in GPU prices, both the news we gave at the beginning of the week about the price of wafers from TSMC and later Samsung, now we must add it a new debacle to the sector.
Prices have risen again, little, but they are doing it. The stock is getting better, true, but there is no demand because the prices are above the 150% vs. MSRP and no one is buying waiting for the price to go down.
Today’s news is going to further sink the hopes of those who want or need a GPU, specifically an NVIDIA graphics card, as it was just learned that AIBs are going to cut supply by nothing less than 30%.
Want to kill your NVIDIA RTX GPU stock?
There are several factors that can explain this. First of all, the prices are no longer due to the lack of stock of the RTX models, since for almost all versions there is stock available. The main problem is the increase in the costs of the entire production and transport chain that are associated with each product, which affects the final price.
TSMC raised prices for AMD, Samsung for NVIDIA, carriers are charging up to 5 times more for the same work, raw materials are in short supply and this results in lower-value electronic parts skyrocketing in cost, from SMD to capacitors .
It is a chain that explains the prices and that justifies that already in this month of September we will soon have a 30% fewer NVIDIA RTX GPUs, because if there is stock available, why continue manufacturing when they are not being sold? The AIBs will stop much of the production and if this continues, if there is no demand and there is a lot of supply, the solution is not to lower prices to compete, but to stop production and sell at the abusive prices that we see because we do not want to lose money even though the market may change.
Only an unexpected script twist seems to be able to change this, since no one wants to lose out on a number of elitist products, ergo, the short-term forecast could not be worse.