NVIDIA cuts the cost of GPUs by 8-12%, we should see the changes next month

It appears that NVIDIA has informed partners of a decrease in their costs. It will be a reduction in the cost of 8 to 12% and it is something that the players will appreciate, and it seems that this change will arrive in the next few weeks (after the inventory reserves are finished, which due to the scarcity I imagine that they must be few …). This is something that hasn’t happened in years (well, roughly since the recent cryptocurrency boom started) and it is a significant indicator of the first real price reduction since 2020.

The decline in values ​​should have a direct impact on the consuming public, who should see video card prices begin to decline in the coming weeks. Although the decrease must still depend on aspects such as profit margins, distribution and storage fees.

For now we don’t think this will have a real quick impact as manufacturing and stock issues continue, China is closed due to COVID and the Russo-Ukrainian War meant some key components are in short supply. Your editor.

NVIDIA’s decision comes at a time when GPU prices are already getting a little cheaper, a little but yes, they are cheaper, this is thanks to the fact that crypto mining is down. With the devaluation of Bitcoin and Ethereum, mining is now less profitable, making it difficult to recoup costs.

Supply issues may continue

Although the costs of NVIDIA graphics cards tend to decrease, it is still a difficult task to find many different models on the market. This is as the semiconductor industry continues to suffer from a component shortage, which is expected to be compounded by new outbreaks of COVID-19 in China, the most recent of which has brought the “Silicon Valley” Chino.

The situation would begin to improve from the second half of the year, when the manufacturer announces its new RTX 40 line based on the Ada Lovelace architecture. The new products must coexist in stores with the RTX 30 line, and the company should take advantage of the higher yields of the Samsung and TSMC production lines to increase the number of products that reach the market.

As I said above, what could bring instability to the semiconductor industry is the war between Ukraine and Russia, which has affected the world supply of neon gas. While manufacturers such as TSMC claim to have sufficiently large inventories of the element, the continuation of the conflict could complicate the process of manufacturing new components and result in an end to the downward trend in prices.

Source: WCCFTECH