Last week, we saw the report from the beginning of this month of February where there was an interesting drop in the price of graphics cards, but we warned that this drop could be a mirage, since Ethereum was again increasing its price. Well, there are new signs and rumors about what could happen in just one month, and that is that the price seems to drop even more in March. What are the new factors affecting this new GPU price drop?
Above all, calm and quiet, 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 the said value without a doubt, but the current scenario seems that it will ultimately work in favor of the user and much less against the miner.
The Great Depression is coming: GPU prices are falling
It looks like GPU prices will drop dramatically next month. I hope it’s true.👀
— Greymon55 (@greymon55) February 20, 2022
The rise in interest rates that Europe is preparing and which is already taking place in the United States seems to scare the big capital out of the investment sector. We’ve been out of GPU stock as such for a year and a half and now that it’s been replenished, it turns out prices have skyrocketed again, but not for long.
Rising interest rates attract these investors for the peace of mind it gives them in the face of inflation and which drives down the price of Ethereum. Especially when we know that the operating model of this cryptocurrency will change in a few months, then everything seems to be the prelude to disaster.
Is it a coincidence that Intel will launch its GPUs for the second quarter and AMD and NVIDIA prices will drop? Obviously not, the blue team is going to tackle the weak point of both companies with a sound stock market strategy according to rumors, so the big two must react and the builders pull themselves together.
Improve supply and borders
On the other hand, several factors could also explain what is about to happen apart from cryptocurrency speculation. First, the borders are opening due to the virus drop 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’s the fact that TMSC and Samsung are seeing results in expanding their facilities and the level of wafers they can offer per day, resulting in a most 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 starting to normalize, although there is a lot of controversy here as we saw last week. It seems that there are groups of companies that are resuming flight and others with orders and deadlines of up to 99 weeks.
Finally, a new date is on the horizon for NVIDIA Ada Lovelace: September. Thus, manufacturers, wholesalers/retailers and stores must empty their stocks at a forced march since now there will be the paradox that the increase in production without the consequent reduction in the MSRP price will make it difficult to sell new cards when the miners will flood second-hand markets.