Report: GPU Shipments To Plummet In 2H18 Due To Low Cryptocurrency Mining Demand, Profit Margins Remains High

With cryptocurrency mining coming to an end, prices for GPUs have dropped back to their usual MSRP. However, 2nd hand GPUs have also flooded into the market which has resulted in GPU shipments to drop and Nvidia and AMD AIB partners expect GPU shipments to plummet even further in 2nd half of 2018.

According to a report from DigiTimes, graphics card suppliers are preparing themselves for the expected drop in GPU shipments and profits in the second half of 2018.

The report suggests that the reason why Nvidia and AMD AIB partners expect GPU shipments to plummet is that of the low demand of GPUs for cryptocurrency mining.

Accordingly, the sources expected the graphic cards supply chain to return in the second half of 2018 to the previous state of serving mainly the gaming sector seen before the rise of the cryptocurrency mining craze. And those makers with weaker deployments in the gaming sector may see their overall shipments of graphic cards fall significantly in the future.

According to the report, due to governments cracking down on cryptocurrency mining, many “individual miners and small mining farms” have already quit the market. Not only that, many medium and large mining farms have scaled back.

Speaking of GPUs, next-gen Nvidia GTX 1180 will launch in Q3 of 2018. This is according to Power Logic chairman Hsu Wen-Fang. For those who don’t know, Power Logic is the leading manufacturer of cooling fans for GPUs and gaming PCs.

Next-gen Nvidia GPUs launching in Q3 of 2018 falls in line with Nvidia’s presentation on its next-gen GPUs in August. Stuart Oberman will be talking at Hot Chips 30 about the Next Generation Mainstream GPUs from Nvidia.

Nvidia prestetion at Hot Chips 30 will take place on August 20th, 2018, which might indicate that Nvidia will be rolling out its next-gen GPUs, presumably GTX 1180 or GTX 2080, by then.

Source: DigiTimes