The NVIDIA RTX 30 and AMD RX 6000 are crossing prices for the first time since 2017, when AMD was somewhat superior to its rival. Since then, NVIDIA has always offered a higher price, where it has sometimes been really pulled against AMD. But the roles are turning and now the fall in the price of GPUs affects Huang’s team more than Lisa Su’s, how is that possible?
More cards sold and greater product diversification
NVIDIA’s strategy coupled with declining interest from miners in cryptocurrencies is driving prices down faster than AMD’s. If we look at the graph, we will see that currently the greens have “only” an extra 44%, while the reds are already 59% above the MSRP, numbers which are still absurd, but instead of the two at the top. the decline, the trend shows that AMD has serious problems.
If we talk about estimates and trends (get a little salt from here), analysts think NVIDIA should be in values near MSRP prices later this year or early this year. next. With that in mind, the most obvious question is why? The simple answer is: different market strategies, we see the complicated answer right now.
NVIDIA and its lines beat AMD and its priorities
🔥 GPU Sale Week 31 (mindfactory) 🔥
AMD: 575 units sold, 30.34%, ASP: 910.25
Nvidia: 1320, 69.66%, ASP: 738.23
AMD turnover (Euro): 523’395, 34.94%
NVIDIA Revenue: 974,468.5, 65.06%Please share. This is the product of Weeks of Work.#AMD #Nvidia #Radeon #NvidiaGeForce pic.twitter.com/yCeVEDlOy6
– TechEpiphany (@TechEpiphany) August 8, 2021
Basically that would be the one sentence summary, but let’s dig deeper to understand the reasons. NVIDIA has launched a completely mining-focused line like its HX GPUs and partly released new versions of the existing ones for games with a firmware legend and with the name LHR.
The drop in mining did the rest, since not only was it not so profitable to mine with GPUs from the greens, but once the stock of previous versions was exhausted and the current prices of the HX caused the costs to drop. buy one of your graphics cards collapsing. It is true that it was easier, since we started from a spectacular extra cost of 304%.
As for AMD, Lisa Su’s strategy is quite risky. And it is that they concentrated 80% of the wafers and chips coming out of TSMC at 7nm for PS5 and Xbox, which leaves 20% remaining for all their products and their catalog. Rumor has it that AMD’s priority right now is:
The priority of wafers from AMD to TSMC
(hypothesis, but looks like this)1.SoC consoles
2. Zen CCD
3. APU Zen
4.cDNA
…
5. Radeon GPU– 3DCenter.org (@ 3DCenter_org) August 3, 2021
This causes NVIDIA to increase the sales gap in the market even further, because in addition to being closer to the MSRP, they will also have more units available. AMD, for its part, has less inventory to sell, implying that the lack of these units increases their price, as they are still scarce.
Will AMD change the priority given that NVIDIA’s prices are now lower than theirs in terms of MSRP distance? This is likely, as they cannot let their rival freeze and eat more market share. Rumor has it that increasing TSMC’s production capacity could end much of the problem, but there is no fixed date and then it could be too late for RDNA 2.
