When Will Nvidia Cards Begin Shipping Again

Gaming enthusiasts have been finding it difficult to get their hands on the latest graphics processing units (GPUs) from NVIDIA (NVDA 9.46%) and Advanced Micro Devices (AMD 9.26%) thanks to huge demand from gamers, scalpers, and cryptocurrency miners. Furthermore, supply concatenation disruptions caused by the pandemic accept also thrown production lines out of gear and added to the trouble. As a consequence, gamers have been paying through the nose to get their hands on graphics cards.

However, a ray of promise is emerging for gaming enthusiasts, every bit graphics card prices have started pulling dorsum lately. But does this mean that the great graphics card shortage is nearing an end? Let's find out.

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Graphics card prices show signs of pulling back

Tom's Hardware's GPU pricing index, which tracks graphics card prices based on eBay data, indicates that the upswing in prices may have come to an stop. For instance, the price of the flagship NVIDIA RTX 3090 was down four.4% in the kickoff half of June compared to the aforementioned flow in May.

It is worth noting that the RTX 3090'south toll dropped even though NVIDIA hasn't express the hash rate of the card, which makes it more desirable for miners as it is capable of mining cryptocurrency at faster speeds. In fact, the RTX 3090 delivers more double the mining profits when compared to the previous generation RTX 2080 Ti.

Meanwhile, the RTX 3080, 3070, 3060 Ti, and 3060 have limited hash rates (and are less attractive for mining) and saw much bigger price declines. The RTX 3080's price fell 11.5%, the RTX 3070 saw an 8.5% decline, and the 3060 Ti's drop was 12.vi% in the first half of June over the prior month.

AMD'southward offerings also saw toll declines fifty-fifty though the chipmaker hasn't restricted the mining capabilities of its cards. Prices of the Radeon RX 6800 XT, the RX 6800, and the RX 6700 XT roughshod 6%, 8.1%, and 5.6%, respectively, month-over-calendar month.

The downside is that the prices are yet quite high when compared to manufacturer-suggested levels. The RTX 3080 has a manufacturer-suggested retail price (MSRP) of $699, but its marketplace toll was nigh $two,000 according to Tom's Hardware's data. The cheaper RTX 3060 Ti is being sold for nearly $1,240, compared to its MSRP of $399.

Then there's still a long way to go before graphics cards go affordable -- just the recent cost correction could proceeds more momentum.

More than price correction could be in the cards

Graphics bill of fare prices accept dropped for two reasons. Outset, 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. The graphics card specialist has brought out specialized cryptocurrency mining processors (CMPs) to address demand from miners, and these chips accept been a hit.

NVIDIA sold CMPs worth $155 1000000 in Q1. It expects to sell $400 one thousand thousand worth of these chips in the current quarter. 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'south. Such an offering could boost NVIDIA's top-line growth every bit the cryptocurrency mining hardware market is expected to add $ii.fourscore billion in revenue over the next 4 years, according to TechNavio.

The second reason why graphics carte prices could exist coming down is a slowdown in mining demand, freeing up more than supply for gamers. According to third-party reports, demand for graphics cards for cryptocurrency mining in China -- the globe's biggest land in terms of mining -- could be slipping considering of a government crackdown.

Jon Peddie Research reports that cryptocurrency miners bought 700,000 graphics cards in Q1, accounting for a fourth of the total GPUs sold. And so weak mining demand should ideally better supply and help lower GPU prices. That's what's reportedly happening in China -- the clampdown in mining has reportedly led to a reduction of upwardly to 45% in graphics menu prices, according to Tom's Hardware. Mainland china'southward sway on the global mining market place could lead to a further GPU toll correction, especially considering that lower mining profits could forcefulness many miners to offload their cards in the pre-owned market.

What'south in it for investors?

NVIDIA stands to win big from an improved supply of graphics cards. The company has a huge installed base of users that are still running older-generation GPUs. Less than 20% of the 140 million users of GeForce graphics cards use the new RTX fries, so an improved supply would boost NVIDIA'south shipments. This modest level of RTX adoption in the gaming market bodes well for NVIDIA's gaming business, which pulled in $2.76 billion in revenue final quarter, growing 106% year-over-year and accounting for nearly 49% of total sales.

Meanwhile, NVIDIA's OEM (original equipment manufacturer) business, which includes revenue from the sale of CMPs, also registered massive growth, with revenue jumping 137% yr-over-year to $327 million. The end-market opportunity indicates that the OEM business organisation could sustain comparable high growth levels going forwards, every bit the mining market has telescopic for additional revenue.

All of this indicates that NVIDIA is likely to remain a height growth stock fifty-fifty if GPU prices come down, as gamers volition keep making a beeline for its RTX 30 series cards and drive stronger volumes once supply improves.

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Source: https://www.fool.com/investing/2021/06/25/is-the-great-graphics-card-shortage-ending/

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