In letter : We’ve all gotten used to the grim picture of graphics cards selling for two to three times their MSRP. The most bullish among industry leaders believe we have six months yet to see prices drop, and the most recent data suggests they will level off at around 90-100% of MSRP of. here there.
GPU prices and availability were bleak in 2021, as we noted in each of our monthly reports. People who have tried upgrading their systems with one of Nvidia’s RTX 3000 series or AMD’s RX 6000 series graphics cards have faced scalpers and cryptocurrency enthusiasts who are ‘took up a large part of the available stock. Pricing for used GPUs has also been a nightmare, as it has followed a similar trend to brand new GPUs.
As we move towards 2022, there are no signs that the situation will improve significantly, but there are a few reasons to continue to hope so.
On the one hand, AMD and Nvidia believe that the supply of graphics cards will gradually improve this year. Intel CEO Pat Gelsinger is less optimistic in this regard, as Team Blue prepares its first wave of Alchemist GPUs which will intensify competition in the space but depend on limited foundry capacity, just like current generation GPUs. of the other two companies.
From the German publication 3DCenter, GPU retail prices appear to have leveled off. After hitting 91-92% above MSRP in December, it’s now back to November levels, with Nvidia’s RTX 3000 series cards hitting 89% above MSRP. AMD’s RX 6000 Series saw a slightly greater than 85% drop above MSRP levels thanks to improved uptime.
Research by Jon Peddie report Last year highlighted a particular fact: Graphics card shipments actually increased towards the end of 2021, which should have driven prices down, at least in theory. The profitability of Ethereum mining took a little hit in December, but that doesn’t appear to have put a dent in the number of GPUs that are at work chopping transactions on the network.
Overall, GPUs are still ridiculously expensive and likely will stay that way until Ethereum begins its major shift to a Proof of Stake model, which will make GPU mining obsolete, or at the very least. , unprofitable. The developers of the protocol expect this to happen in June, but there is always the possibility of further delays.