GPU Prices Rising Again, But Chip Shortage Isn’t The Reason

As per the latest data, Nvidia GPUs went from 150% of the suggested price to 159%, while AMD cards witnessed a surge from 159% to 164%. Although AMD prices showed a 3% increase at the beginning of August, Nvidia prices continued to go down. But the downward trend is changing and Nvidia card prices are going up again, hinting the GPU crisis isn't over yet.

It's imperative to note that the new report only focuses on German retailers, so these numbers aren't applicable to the whole world. However, they do serve as a good reference point for the changing price trends. Besides, the data also doesn't include the RTX 3070 Ti, RTX 3080 Ti, or the RX 6600 XT, as they are new and priced higher than the GPUs introduced last year.

 

China’s Crypto Crackdown Didn’t Help

China's came down hard on crypto mining operations in the country, forcing many crypto miners to sell off their GPUs for cheap prices. Although the crackdown didn't necessarily mean the end of chip shortage, the values of digital tokens and real-world goods associated were set to face the heat.

Rather than selling at a much higher price than the original cost, GPUs were going on sale for a relatively lower price. Many reports hinted that this trend was noticed in some parts of Asia. However, it seems China's actions against crypto mining only ended the GPU shortage but couldn't bring down the cost significantly.

What’s Causing The Uptick?

The report suggests the decreased supply of the oldest current-gen GPUs as the prime reason for the surging pricing. The AMD RX 6800 is nowhere to be found, while Nvidia's RTX 3070, 3080, and 3090 have also witnessed a shortage in availability.

Since Nvidia has shifted focus on its Ti variants of these models, the scarcity is expandable. Each GPU in the RTX 30-series range has its upgraded version except for the RTX 3090. If the rumors are to be believed, Nvidia might bring the RTX 3090 Super variant later this year.

This suggests availability isn't an issue now, but Nvidia failed to anticipate the crisis would last this long and chose to focus on updated Ti variants instead of the base models. Since those models are running out, and aren't getting replaced with new inventory, the prices are eventually witnessing a surge.

Crypto Mining Still A Concern

Another factor adding fuel to the issue is crypto mining. Nvidia and AMD GPUs saw a huge spike in pricing in May this year, which was directly proportional to the surging price of Ethereum prices. The cryptocurrency's price was stable for some time, but it's going up again. GPUs are still the most used source for mining Ethereum, and the digital currency is probably playing a significant role in the price hikes.

Moreover, supply issues are expected to continue next year as well. With supply chain issues to continue throughout 2022 and cryptocurrency prices seeing a constant increase, we might not fully recover from the situation. Moreover, chipmaker TSMC, the creator of AMD RX 5000 GPUs is also reportedly planning a price hike this year, making graphics cards heftier.

While there are enough GPUs for users to get their hands on, supply chain hurdles are still a big concern to fulfill demands of gamers and crypto miners. The situation will likely help people selling secondhand cards in the market. Let's hope to see companies bringing out more GPUs to keep the skyrocketing prices at bay.