A GPU is a Graphics Processing Unit. GPUs are embedded systems, mobile phones, personal computers, workstations, and game consoles.GPUs are specialized microprocessors that offload and accelerate graphics rendering from the CPU. They are used in various applications, including video decoding, 3D rendering, and image processing.
Essentially, GPUs are an essential part of every computer. It’s critical for every advanced gaming PC and vital to your run-of-the-mill work PCs. However, there has been a severe problem affecting GPUs during the past few years, and that is the GPU shortage.
The GPU Shortage
The GPU shortage is an industry-wide problem caused by the ever-increasing demand for GPUs. The main culprits are cryptocurrency miners and the gaming market. Cryptocurrency miners purchase GPUs in bulk to build mining rigs, while gamers purchase GPUs for gaming PCs. Combining these two groups has resulted in a massive increase in GPU prices.
Another reason why there is a GPU shortage is because of microchips. The manufacturing process for GPUs is extremely complex, and it uses a lot of microchips. The worldwide shortage of microchips has forced GPU manufacturers to increase prices.
The problem with the production of microchips is that there are only a few companies that control the market. The two main companies are TSMC and Samsung. These companies have a monopoly on the microchip market, and they can charge whatever price they want. However, recent circumstances have made it hard for them to produce the right amount of microchips to supply GPU manufacturers.
The good news is that the GPU shortage is expected to end sometime this year. Now that we know the main reasons for the GPU shortage, let’s look at five reasons GPUs will be cheaper this year.
The cryptocurrency mining market is declining
The cryptocurrency mining market is in decline. This is due to the bearish crypto market and the fact that mining cryptocurrencies are no longer as profitable as it once was. As a result, miners are selling their GPUs on the used market, driving down prices.
However, this doesn’t mean that miners will stop the GPU shortage outright. They will continue to purchase GPUs, but not at the same rate as before. This is good news for gamers and consumers who want to purchase a GPU at a reasonable price.
The gaming market is expected to slow down
The gaming market is expected to slow down this year. This is due to the release of the next-generation consoles, which will divert gamers’ attention away from PC gaming. As a result, there will be less demand for GPUs, which will drive down prices.
This transition can undoubtedly alleviate some of the pressure on the GPU market. Nevertheless, prices will take time to return to normal levels.
Used GPUs are flooding the market
Used GPUs are flooding the market and driving down prices. You can find used GPUs for sale at a discount from various sources, including online forums, online marketplaces, and dedicated GPU resellers. A used GeForce GTX 1060 6GB video card costs around $150-175. That’s a worthwhile price considering that a brand new one is around $299.
However, it’s essential to be aware of the risks involved in buying a used GPU. Used GPUs may be damaged or may not be covered by a warranty. Therefore, it’s always best to buy a new GPU from a reputable retailer.
Newer and more powerful GPUs are being released
Newer and more powerful GPUs are being released, which is driving down the prices of older models. For example, the GeForce GTX 1080 Ti is now available for around $699. That’s a significant drop from its original price of $999.
The release of newer GPUs will also have a positive effect on the prices of used GPUs. As new GPUs are released, older GPUs will become more affordable.
AMD and NVIDIA are increasing production
AMD and NVIDIA are increasing production in order to meet the ever-increasing demand for GPUs. This should help to alleviate the GPU shortage and bring prices back down to normal levels.
Both of these brands are moving their manufacturing into the United States and are also producing microchips within the country. The increase in production is expected to help lower the prices of GPUs this year. Moreover, this can make GPU production more self-sufficient and make GPUs a lot more available to Americans.
Conclusion
The GPU shortage is expected to end this year for a variety of reasons. The main reason is that the demand for GPUs is expected to decrease while the supply increases. This is good news for gamers and consumers who want to purchase a GPU at a reasonable price. So make sure to purchase your GPU this year if you want to save money on it.
