AMD And Nvidia AIBs Expect GPU Shipments To Drop By 40%

With the boom of cryptocurrency, AMD and Nvidia GPUs were hard to find in the market and their prices also went sky-high. This sudden boom in cryptocurrency caused the GPU demand to increase significantly and as the bubble has burst, AMD And Nvidia AIB partners expect that the GPU shipments will plunge 40% in April.

As reported by DigiTimes, the industry sources have revealed that Gigabyte, MSI, and TUL are expecting the GPU shipments to drop by 40% in April due to cryptocurrency craze coming to an end.

Channel distributors and larger mining farm operators have cut orders with makers of mining graphics cards and mining motherboards or asked them to suspend shipments due to the crypto mining craze waning abruptly from the beginning of April, the sources said.

According to the report, some mining farms have stopped purchasing GPUs as they wait for the Bitmain Ethereum ASIC miner to come out which rolls out in the third quarter of 2018 and the miners expect Bitcoin and Ethereum values to rebound around the same time.

Not only that, the sources reveal that with the drop in shipments, the “gross margins for graphics card makers” will drop 20-25%. However, the AIB partners expect that the demand can rebound around May and June 2018.

This drop in GPU demand could potentially result in GPU prices to come down drastically which went sky-high as the GPUs became short in the market.

Speaking of the GPUs, following the Nvidia GeForce Partners Program, AMD has started making aggressive moves so that the company’s side of the story may be heard by everyone and in that effort, AMD has rolled out a report revealing that AMD Radeon graphics are being used by 53% gamers.

What do you think of the 40% drop in GPU shipments or demand? Will it have any impact on price and availability? Let us know in the comments.

Source: DigiTimes

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