Cryptocurrency GPU demand is over, but gaming GPU demand is still strong though it will take time for prices to normalize

ASUS has stated that the demand for GPUs in the crypto mining segment has almost dried up, but prices will take time to normalize due to strong demand for gaming cards.

In his latest earnings report, ASUS co-CEO Sy Hsu stated that GPU demand within the crypto segment is drying up, but whether prices normalize depends on overall demand and not just the crypto variable.

ASUS says it will take a while for GPU prices to normalize despite declining demand with cryptocurrencies

“As the demand for cryptocurrency mining in GPU shipments has slowly declined, the demand for graphics cards across the market is normalizing,” Asus said.

“Because the demand for cryptocurrencies is disappearing, it makes us wonder if GPU prices will normalize as well,” Hsu said. “Actually, the demand for gaming GPUs is still strong, so we still don’t think we can firmly satisfy all gamers in the world.”

ASUS earnings calls.

GPU prices saw a huge price increase of more than 3 times during the peak mining season, but 2022 started with a decline in demand for GPUs for cryptocurrency mining due to shrinking profit margins and the increased difficulty. All of this has resulted in prices and availability of GPUs improving considerably. As of now, NVIDIA GeForce and AMD Radeon graphics cards are available at major retailers with prices ranging from 5 to 10% above MSRP (Recommended Retail Price). Furthermore, prices are expected to drop further with the Ethereum 2.0 update, which should essentially phase out GPU mining, although ASUS believes the mining issue may have a small impact on prices.

NVIDIA GeForce and AMD Radeon graphics cards are available at major retailers

As seen in the statement from ASUS, they state that price normalization may not happen anytime soon as demand for GPUs in the gaming industry remains strong. Although this is somewhat true, there are many examples where we see prices below MSRP, such as some AMD graphics cards.

As we discussed, ASUS was one of the many companies that benefited from the GPU mining craze, so it may take some time to adjust to the new norm, but for now, buy an introductory priced card. It would be a great victory.

Fuente: PCMAG