back to article GPU makers promise relief is at hand over chip shortages, prices expected to fall in second half of the year

Buyers may not have to resort to treasure hunting for elusive GPUs in the second half of this year as semiconductor companies expect supply and prices to start normalizing. Nvidia is working with supply-chain partners to push out larger quantities of its chips, including GPUs, to the market, said Colette Kress, Nvidia's chief …

  1. UK DM

    The only shortage is in MSRP parts

    Maybe Intel will be along demonstrating there is no supply problem.

    When they flood the market with low and mid range cards before the end of Q2, as they kick off their multi year GPU product line up refresh.

    Then attempt to push on the door of team red and team green, by eating into the bottom end of their high spec gaming lineup they launched within the last 18months.

    1. Anonymous Coward
      Anonymous Coward

      Re: The only shortage is in MSRP parts

      It's pretty clear that the Intel GPUs are being fabbed by TSMC so there is still a manufacturing bottleneck. But I don't think that will be too bad, as Intel's allocation will be over & above AMD & Nvidia's.

      So Intel's entry might increase supply by 50%.

      In a recent interview Raja Koduri alluded to the difficulty of getting market share, which makes me wonder whether the Intel cards will have "special" pricing to crack the market open.

      If the Intel cards get to market while the GPU shortage is ongoing, Intel will truly be the lucky company.

  2. Anonymous Coward
    Anonymous Coward

    I, for one, shall remain patient.

    I need to upgrade my desktop but it looks like it’s going to be another year…

    1. Pascal Monett Silver badge

      Re: I, for one, shall remain patient.

      I have upgraded, last November, and I don't recall any specific issues with the RTX 3080 I ordered.

      I didn't have to wait for weeks to get it. When I ordered it, it was marked as In Stock, and I got it with the rest of the kit.

      Maybe in Europe there aren't that many cryptominers ?

      1. Anonymous Coward
        Anonymous Coward

        Re: I, for one, shall remain patient.

        In the UK I've been keeping half an eye on graphics cards. My preferred supplier (always been reliable for me) has had 3080 cards in intermittently for the last six months or so, priced at about £800 or higher. The problem has been on lower-spec ones. Four (or five?) years ago I bought a 1060 for about £250. There has been nothing in that price/performance range for over a year.

        I think that Steam surveys still report 1060 as one of the the most popular cards, so a lot of people are like me, and want mediocre (or good-enough) performance (at a lower price) rather than paying up for top-line performance. Maybe AMD's announcement of the 6500XT at £199 (well, $199, but taxes etc...) will start to address this market, but AMD cards have been even thinner on the ground than Nvidia ones.

    2. Anonymous Coward
      Anonymous Coward

      Re: I, for one, shall remain patient.

      I actually refreshed my whole machine, except for the graphics card. My 1070 still seems to be handling the load for now, and given the graphic card would more than double the cost of the build if I got one now, it's just not worth it.

      1. Steve Kerr

        Re: I, for one, shall remain patient.

        I've got the AMD Ryzon box I built a couple of years back, still has a GTX970 in it from beginning of 2015 as I'm not paying these current eye watering prices (even if I could get hold of one)

        1. Rob-T

          Re: I, for one, shall remain patient.

          I got a GTX960 six years ago when I built my current PC (the photo of the pile of boxes for my build showed up in my Facebook memories yesterday). Over Christmas I bought a second hand RTX2060 (as well as a few other upgrades... a friend has referred to my PC as "Trigger's broom") and sold my GTX960 for only £20 less than I bought it for SIX YEARS AGO!!!

  3. itzumee

    I doubt prices will come down to pre-GPU-shortage levels this year or next. These days if you need a GPU without paying over the odds then eBay is where it's at unfortunately. I've almost completed my latest self-build PC which includes a 1 year old used GTX 1650 Super which, according to Currys PCWorld retails for £170 (but of course they've no stock) so I've paid £100 more for a used GPU. I don't feel too bad about it though, Amazon lists the same GPU for £385.

  4. The Dogs Meevonks Silver badge

    Not a solution

    The problem is multifaceted and cannot be fixed by just one remedy

    Cryptomining is a vast problem for the shortage, and moving some coins away from GPU mining as has been promised will not work, because others will just fill the gap.

    Manufacturers selling direct to miners at increased profit margins rather than retail channels

    Bots/scalpers buying up what little stock does reach retail to be resold at higher prices

    Retailers themselves jacking up prices to scalper levels because they also want some of the extra profit

    Gullible buyers actually willing to pay 100-150% extra for cards

    Fixing one of those isn't going to solve the problem...

    1. S4qFBxkFFg

      Re: Not a solution

      It is a puzzling situation, but I think one simple thing holds true: unless manufacturing capacity increases significantly, there is no solution, even if you ignore mining, there is too much "normal" demand for supply to match.

      I can only assume AMD/Nvidia are contractually prevented from raising their prices to a level that forces out the scalpers (imagine how it looks to shareholders when their company is selling product at a fraction of what buyers will pay); when those contracts expire, things might change, and the profits can go into capacity expansion (and yes, dividends too) rather than to someone with an ebay account and spare room full of cards.

      Even if miners were to buy all the new stock, there will be a proportion of their old cards that are too inefficient to be profitable: assuming they can be bothered trying to recover some of the purchase cost, these will end up with the second hand retailers as well.

      1. The Dogs Meevonks Silver badge

        Re: Not a solution

        There's also deliberate attempts by some manufacturers to artificially create scarcity to keep those prices high.

        For example... nVidia this week announced the RTX3090 Ti... which just happens to use the exact same die as the 3080, 3080 Ti and the 3090... Instead of making more cards available at the 3080 level which is far and away the most desired card... they're further splitting availability to increase the higher profit margin cards.

        A few weeks back.. they re-released the RTX2060 but with 12GB or ram... which just so happens to be extra efficient at... MINING!!!

        Companies are driven by profit... but this blind greed of short term gain at the cost of alienating your entire consumer base and attempting to kill of an entire segment of the market that's grown to be one of the fastest growing sectors once more... Not a good look, and not great for long term business plans.

        Then there's the fake MSRP or RRP depending on your country... where the stated retail price is only available for a limited number of cards on release... literally a few hundred of thousand cards. Followed swiftly by... new versions of the same card at higher and higher prices.

        Have you seen the number of identical cards some of the companies produce... bumping the clock speeds a few mhz and upping the price 10-20% along with it.

        The MSRP price is complete bullshit these days... it doesn't exist... and they'll do everything they can to ensure it never does again.

        It's enough to make me want to never build a system again... thankfully I built my current one in April 2020 as the lockdowns began... and I'd bought an RX5700XT just 6 months before that for £70 below retail price. I still got ripped of as prices were already showing signs of price gouging. I paid about £120 more than I should have on the Case, CPU, MB & Ram. That was already a £2k system and possibly the most expensive PC I've ever put together... not counting the GPU I bought 6 months earlier. But it was a ground up build rather than an upgrade build and I did go PCI-E 4 NVME with some large capacity drives, plus a couple of large capacity SSD's and even succumbed to the dreaded RGB.... which I'd avoided to this point, but thought... I've got the extra money... fuck it.

        So because I built before the shitshow... I won't need to upgrade this year either... 5700XT is a solid card still, the 3800X will do 4.4Ghz all core at 1.24v and 32GB 3600Mhz ram isn't going to slow anything down for years to come yet... Maybe next year when the GPU is going on 4yrs old and if the market has returned to normal... I might get something. but the rest will be good for a few more years yet... Maybe grab a 5800X3D in a year or two for a little boost for a extra bit of longevity.

        Around 2025... maybe then I'll look at a DDR5 based AM5 platform... not before and if this shitshow continues... Maybe not at all.

  5. Anonymous Coward
    Anonymous Coward

    The thing is... the market has already proven that it will pay current prices. The GPUs are moving if people like me have been priced out. So why would the people involved in a de facto GPU cartel bring down prices? Both AMD and Nvidia are just happy to keep current prices as insane as they are - they just want to capture all the profit, not leave it to scalpers. They've discovered that they can sell out thousand dollar GPUs, they'll never give that up.

    1. Anonymous Coward
      Anonymous Coward

      The GPU makers are trying to fight scalpers.

      We buy lots of top-end Nvidias (not for crypto) Nvidia even send us pre-release sample next gen cards for free. And they are limiting the number of cards we can buy.

      And these are the highest markup Quadra and AX series cards, not the stuff that gets sold to retail.

      1. Anonymous Coward
        Anonymous Coward

        I agree, they want to fight scalpers. But both AMD and Nvidia would be perfectly happy if the GPU market stayed at their current prices. They just want the money to go to *them*, not scalpers.

  6. aldolo

    the solution is always 6 months away

    in the future

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