Graphics Card Prices Will Go Down in July Due To Crypto Market Drop

Sources report that the recent decline in prices in the crypto markets has determined graphics card providers to lower their prices, according to media outlet DigiTimes.

Anonymous sources from the “upstream supply chain” told DigiTimes that the sales of ASIC hardware used for crypto mining have been affected negatively, experiencing an anticipated price drop of nearly 20 percent in July. The list of affected companies includes the Taiwan Semiconductor Manufacturing Company, along with its integrated circuit (IC) design service partners such as Global Unichip.

Currently, the global graphics card market inventory is set around several million units. The popular US-based Nvidia, a well-known graphics card manufacturer, allegedly has approximately a million GPUs which are scheduled to be released, according to disclosures made by the sources. They also gave details regarding Nvidia’s next-generation GPUs, which will have its release date put off until late in the fourth quarter of 2018.

Nvidia reported in May that from processor sales to the crypto community they made $289 million in the first quarter, expecting a two-thirds decrease in the second quarter because of the market correction. Also in the same month, Bitmain, a Chinese ASIC producer announced that they were thinking of orientating their services towards AI after China began to enforce stricter regulations and guidelines regarding crypto trading and mining.

The prediction that was made in June by two analysts from Advanced Micro Devices Inc. (AMD) apparently came to be true, as they said that the share price could go down if crypto mining were to experience a drop in demand due to market fluctuations.