Advanced Micro Devices (AMD) and Nvidia are on the path to further cutting the prices on the graphic processing units (GPUs) to sell their overstocking inventory. After facing the worldwide supply shortage during the pandemic, which caused a lack of resources too, and the cryptocurrency market users massively stocking up on the GPUs, the second-hand market rose with more and more used GPUs being sold.
The events that had taken place led to an increase in the prices of the GPUs, making them unaffordable for the time being. Following the report by Taiwan Economic Daily, published on august 28, Nvidia and AMD are rumored to cut their GPU considerably in the upcoming month.
“Huang Renxun, CEO of Nvidia, publicly said that there was an overstock problem, was selling at a reduced price, and there was pressure to cooperate in the operation of Taiwan factories,” Xiao Junhui reported. Additionally, at the same time, MyDrivers reported that: “Graphics card manufacturers will launch a new wave of price reductions from September, mainly NVIDIA and AMD products, and the price reduction will be much stronger than before, which can better relieve cost pressure.”
The Covid-19 pandemic led to worldwide supply shortages in many different areas. This supply issue had also heavily impacted the PC users who were trying to upgrade their devices. Although, even with the discount on the GPUs, it is likely that not as many people are going to be attracted, possibly due to their financial struggle caused by the increasing prices of food, heating, and energy. Additionally, the upgrades of their devices do not usually come as their main priority, as opposed to sustainability and survival.
However, the main reason for the possible lack of interest in the GPU sale could be the collapse of the crypto market, which caused the oversupply of the used GPUs on the second-hand market, and the upcoming Ethereum (ETH) merge, which will change the way the transactions are verified from Proof of Work (PoW) to Proof of Stake (PoS). In addition, the new transaction verification algorithm is supposed to consume less energy and not use the GPUs anymore. This only means that many Ethereum miners will be stuck with expensive technology they have no use for. However, it remains to be seen if the price cut is implemented in September.