NVIDIA States That GPU Prices Will Continue To Go Up Until After Q3 2018
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NVIDIA Expecting GPU Prices To Continue To Skyrocket, No Relief Till Late 2018
NVIDIA has released several statements on the current GPU market situation. CEO of NVIDIA, Jen-Hsun Huang, mentioned during their earnings call for FY 2018 that they are working hard to address the GPU supply issues which in return could provide some relief to gamers. The CEO also stated that overwhelming demand in the cryptocurrency market hit them with a surprise and even exceeded their expectations. But being one of the largest GPU suppliers, the company has an edge over the competition when it comes to working with their partners (retailers, DRAM producers, distributors, etc) but even a giant like NVIDIA is currently taking the burden of huge demand and expects the market retaining it’s pricing position till late 2018.
One of the common reasons cited by both AMD and NVIDIA behind the supply issues has been the unavailability of DRAM supply. According to Hutch, Apple and Samsung have gobbled up entire stocks of DRAM for their next-generation smartphones and are paying extra to DRAM suppliers to keep the supply to them. This means that graphics card manufacturers such as ASUS, MSI, EVGA and Gigabyte are unable to produce enough graphics cards considering the availability and prices of DRAM.
The other thing is that since Apple and Samsung smartphones use different memory compared to graphics cards (LPDDR4 vs GDDR5), the DRAM producers may have switched priority to those who are paying them extra, in this case, the smartphone industry. On the same front, we can see DRAM such as GDDR6 which will be produced by Micron, Sk Hynix and Samsung be a game changer since the green team has historically partnered with Micron and Samsung to produce high-end gaming cards (GTX 1080 with G5X) for the gaming community.