Core stuff (public number: aichip001)
Compile the | ZeR0
Edit | Desert Shadow
According to Reuters, the sharp drop in graphics card prices may indicate that the global chip crisis will end unexpectedly and quickly, which will become a core issue for companies to announce their results this week.
As Intel, Qualcomm and others have reported, investors will weigh the impact on the chip supply chain of factors such as the impact of inflation on consumer spending, the outbreak of the Chinese lockdown and the Russian-Ukrainian conflict.
The trigger is the falling price of graphics processing units (GPUs), the "brains" of game consoles that are currently being widely used in other areas.
Previously, according to CCTV Finance "Punctual Finance" reported on April 8, the domestic market graphics card prices are also a large area of diving, in Shenzhen Huaqiang North, known as "China's first street of electronics", some merchants said that the price of graphics cards of various brands of graphics card prices have fallen sharply, the price is at a low level in the past two years, and it has dropped almost 1,000 yuan in the past month.
CCTV financial reporter investigation learned that many speculators in the early stage of high-priced hoarding, planned to increase the price after the sale to the market, the result of a large number of inventory smashed in the hands, and finally forced to reduce prices, heavy losses. In the future, with the reduction of the demand for graphics cards on the market and the increase in supply, there is still room for the price of graphics cards to decline.
Recently, after falling prices, Baird analysts downgraded GPU maker Nvidia to "neutral." Nvidia's shares are down about 31 percent so far this year, and those of rival AMD are down about 37 percent, while the Philadelphia SE Semiconductor Index is down about 22 percent. Both companies declined to comment.
GPU prices are still being sold at a premium, but in smaller margins. Susquehanna analyst Christopher Rolland said earlier this month that the markup on the manufacturer's suggested retail price or suggested retail price had fallen from 77 percent to 41 percent.
3DCenter, a graphics hardware news site that tracks european graphics prices, reported that the AMD Radeon RX6000 for gaming and Nvidia's GeForce RTX30 graphics cards were priced 80 percent higher than the suggested retail price, compared to less than 20 percent more than the suggested retail price earlier this year.
A recent Reuters investigation found that most of Nvidia's GeForce graphics cards are still out of stock at retailers such as BestBuy and Newegg Commerce.
Baird senior analyst Tristan Gerra told Reuters that if the electronics companies that buy the chips expect prices to fall further, they will cut a lot of inventory, further reducing purchases, thus putting pressure on prices. "It's a vicious circle."
Analysts say demand for GPUs could also decline as cryptocurrency Ethereum is expected to change the way it operates by the end of the summer, which will reduce the demand for graphics chips from the systems currently used to mine cryptocurrencies.
There is controversy over whether low prices will spread across the chip industry.
Weak demand in the PC and smartphone markets has also led to lower prices for other chips, such as CPUs and edge processors such as some memory chips. Summit Insights Group analyst Kinngai Chan expects some other chips made from older machines to face overcapacity in the second half of the year.
But Bank of America believes that the weakness in gaming or cryptocurrency mining businesses may be offset by strong demand for graphics cards in data centers and reiterates its "buy" rating for Nvidia.
Dan Hutcheson of TechInsights said: "Between all the chip factory investment and all the bullish sentiment, we think the shortage won't end until 2023 or 2024 and we may see an oversupply." "The scope of the oversupply will extend beyond GPUs.
Source: Reuters, CCTV News