The fall in prices of graphics cards is linked to a fall in demand which does not suit the two main players.
Of course linked to the collapse in the price of crypto-currencies, the drop in demand for graphics cards also finds its source in the current economic situation and fears about the future.
A drop in demand
Thus, many analysts consider that the inflationary surge observed for several months already will also have consequences on the demand for computer components… and not only on the graphics card market.
The fact remains that we are only mentioning here the main players in this market, AMD and NVIDIA. To believe Videocardzthe two American companies have perceived these gloomy prospects well and do not believe at all in a very strong demand for the next generation of GPUs.
In fact, they are trying one after the other to negotiate lower orders placed with the world’s leading founder, the Taiwanese giant TSMC. NVIDIA had, for example, made prepayments to guarantee access to the founder’s 5 nm lines, but TSMC does not wish to renegotiate.
Share prices down sharply
NVIDIA would therefore find itself obliged to find itself customers likely to take its place with TSMC. A more complex task while, as we said, the drop in demand concerns most segments of the IT market.
AMD/NVIDIA: shares that have lost a lot of ground since 1er January 2022 © Google
The situation is complicated for AMD as for NVIDIA. Both companies anticipate a drop in demand, but would especially not want to find themselves flooding the market with GPUs without potential buyers because this would cause prices to fall.
Although this information is not confirmed by the main interested parties, the situation does not seem very comfortable for the two American companies. This is also reflected in the price of their shares with a drop of more than 50% since the beginning of the year.
Source : Videocardz
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