How is the Graphics Card Market and Stocks?
The chip crisis and supply problems in graphics cards have been bothering consumers for two years. We’ve had news lately that things are getting better. Judging by the new reports, the supply process for AMD and NVIDIA cards seems to be improving.
Now hundreds of AMD RX 6000 and NVIDIA RTX 3000 series cards are available to order from retailers and throughout the retail chain. This is good news after months of supply problems, but still, prices have not decreased to match supply.
Computer hardware retailers and price comparison sites in France, Germany, and Portugal are all trending optimistically, with graphics cards offered in varying quantities. On the other hand, the situation seems to be the same in the United States; Newegg has many different graphics cards listed among manufacturers and stocks don’t go down to zero instantly like they used to.
For PC components and consumer electronics, supply levels were reported 29% and 5% higher than before the pandemic. There appears to be no immediate threat of shortage of supply, and major distributors are said to have thousands of cards in their warehouses.
Newegg lists over 300 RX 6000 or NVIDIA RTX 30 series cards that can be ordered. And the same goes for Mind factory in Germany, French retailer Top Achat and comparison site KauntoKusta in Portugal.
The most important reason for the market recovery is probably related to the recent cryptocurrency market crash, which saw a drastic drop in Ethereum’s value. Lower cryptocurrency values mean it will take longer for an investment to be recouped.
Alongside that, the global supply chain could not meet the high demand during the COVID-19 period and price increases were made. Silicon designers such as AMD and NVIDIA were negatively impacted by higher wafer prices. Generally, companies prefer to keep their margins stable and pass the additional costs to the next step in the chain. Distributors also charge higher prices than retailers for each graphics card.
Although some downward trends are observed in prices, graphics cards are still sold at figures far above the list prices. In this context, we expect prices to be lowered due to falling demand and increasing stocks.
Also, neither AMD nor NVIDIA have introduced new graphics card series recently. We expect both manufacturers to introduce their new architectures in 2022. On the NVIDIA side, the RTX 40 series codenamed ‘Ada Lovelace’, and on the AMD side, the Radeon RX 7000 series with RDNA 3 architecture will be with us. In this context, many consumers can wait for upcoming cards and avoid buying graphics cards at the current high prices.
It seems that retailers are now starting to accumulate unsold inventory, which means we’re entering a period where the supply/demand equation can come into play again. If that happens, retailers will now slowly drive prices down, and many customers waiting for a GPU may be willing to buy a new card.
Before we conclude our article, let us remind you once again that Intel will soon be releasing external Arc Alchemist graphics cards. With the introduction of a new player to the market, our product selection will naturally increase, and more graphics cards will enter the market.
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