![]() ![]() Less than 20% of the 140 million users of GeForce graphics cards use the new RTX chips, so an improved supply would boost NVIDIA's shipments. ![]() The company has a huge installed base of users that are still running older-generation GPUs. NVIDIA stands to win big from an improved supply of graphics cards. China's sway on the global mining market could lead to a further GPU price correction, especially considering that lower mining profits could force many miners to offload their cards in the pre-owned market. That's what's reportedly happening in China - the clampdown in mining has reportedly led to a reduction of up to 45% in graphics card prices, according to Tom's Hardware. So weak mining demand should ideally improve supply and help lower GPU prices. Jon Peddie Research reports that cryptocurrency miners bought 700,000 graphics cards in Q1, accounting for a fourth of the total GPUs sold. According to third-party reports, demand for graphics cards for cryptocurrency mining in China - the world's biggest country in terms of mining - could be slipping because of a government crackdown. The second reason why graphics card prices could be coming down is a slowdown in mining demand, freeing up more supply for gamers. Such an offering could boost NVIDIA's top-line growth as the cryptocurrency mining hardware market is expected to add $2.80 billion in revenue over the next four years, according to TechNavio. What's more, rumors suggest that the chipmaker is reportedly working on a more powerful CMP capable of outperforming the RTX 3090, with a hash rate that could be a third higher than the flagship GPU's. It expects to sell $400 million worth of these chips in the current quarter. NVIDIA sold CMPs worth $155 million in Q1. The graphics card specialist has brought out specialized cryptocurrency mining processors (CMPs) to address demand from miners, and these chips have been a hit. First, market leader NVIDIA has been trying to ensure an increased supply of graphics cards to miners so that they don't price gamers out of the market. Graphics card prices have dropped for two reasons. More price correction could be in the cards So there's still a long way to go before graphics cards become affordable - but the recent price correction could gain more momentum. The cheaper RTX 3060 Ti is being sold for nearly $1,240, compared to its MSRP of $399. The RTX 3080 has a manufacturer-suggested retail price (MSRP) of $699, but its market price was almost $2,000 according to Tom's Hardware's data. The downside is that the prices are still quite high when compared to manufacturer-suggested levels. Prices of the Radeon RX 6800 XT, the RX 6800, and the RX 6700 XT fell 6%, 8.1%, and 5.6%, respectively, month-over-month. AMD's offerings also saw price declines even though the chipmaker hasn't restricted the mining capabilities of its cards. ![]()
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