The GPU Prices is always a point of controversy. Due to manufacturing shortages, shipping delays, and increased demand from people quarantined at home, the price of graphics processing units (GPUs) skyrocketed during the COVID-19 pandemic.
Although the release of GPUs beginning at $1,600 has slightly distorted the market, prices have decreased since then.
With Nvidia rumored to be cutting manufacturing of its RTX 4000-Series desktop GPUs in favor of its gaming GPUs, there are now opinions that GPU prices will fluctuate again.
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Is Nvidia Preparing to Reduce Production of Its Desktop GPUs?
It has been reported by Hardware Times, via a Chinese news source, that Nvidia is preparing to reduce the output of the RTX 4060 and RTX 4070 by as much as 50 percent. Since there is a high demand for gaming laptop GPUs, the chips earmarked for desktops would be redirected to those products. If the allegations about the world’s largest GPU manufacturer cutting production are accurate, then the price of graphics processing units (GPUs) will spike.
Reports that Nvidia will reduce the quantity of its GPU product is nothing new. Benchlife stated in early 2023 that Nvidia would reduce the manufacture of the Nvidia 4070 due to poor sales and a need to free up production space. But it doesn’t appear that such rumors affected the cost of GPUs.
However, there are other thoughts concerning RTX 4000 manufacturing. TechRadar says that the ultra-powerful RTX 4080 and RTX 4090 availability is decreasing.
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The adage is that you can’t have fire without smoke, but we can only speculate until we hear otherwise from Nvidia.
Should You Upgrade Your GPU Now?
Whether or not to purchase a new GPU is continuously discussed in discussions on GPU pricing fluctuations. It’s tough to make a final decision, but there are a few things to consider.
It starts with a report from Digital Trends indicating GPU costs have dropped dramatically from their epidemic peaks in 2021-2022 but are still significantly more than MSRP for many models. The recent downward price trend may be reversed if the availability of RTX 4000 cards is reduced. The average selling price of Nvidia 30-Series cards decreased by about 8% between September 2022 and January 2023. Even after accounting for tariffs, the average cost of a card is 42% more than its MSRP.
Second, in September 2023, AMD is rumored to release the RX 7700 XT and RX 7800 XT GPUs. AMD’s new GPUs will go head-to-head with Nvidia’s if the introduction of its prior 7000-Series GPUs is any indication. FOR INSTANCE, the AMD RX 7900 XTX was about $600 cheaper than the Nvidia 4090. Even though the Nvidia 4090 was the superior GPU in practically every manner, most buyers are still willing to spend a month’s worth of rent on a GPU.
In light of rumors that Nvidia plans to cut back on GPU production, competition from AMD may keep costs from skyrocketing.
Significant Decrease in Crypto Mining Has Decreased Pressure
GPU prices could be maintained using a third, final release of pressure. The Ethereum network has not relied on the proof-of-work algorithm for security or currency issuance since the Ethereum 2.0 Merge in September 2022. Proof-of-stake, a consensus mechanism that does not necessitate the usage of powerful hardware, has been adopted.
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The massive increase in Ethereum mining, primarily performed using GPUs, was one of the key drags on GPU pricing during the pandemic and subsequent years. Without this pressure, and without each new generation of GPUs being gobbled up by crypto mining, prices have remained steady.
You Should Monitor GPU Costs
Consider purchasing a GPU until 2023, when AMD’s new hardware becomes available. If the rumors about Nvidia reducing output are accurate, AMD’s involvement could still compel Nvidia to act.
In any case, GPU pricing is something you should monitor.
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