The GPU market at its lowest

[Portada HL]

Bad news continues to arrive for GPU manufacturers (and good news for the rest of the world). The sale of graphics cards, both discrete and integrated, has reached lows of the last decade. For its part, Intel is beginning to gain ground in the sector.

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[defaultuser]

GPUs, DRAM and flash memory, all reducing production, Chinese manufacturers apparently buying mining VGAs to remove the chip and use it in another assembly, governments trying to gain technological independence, the Chinese making their own CPUs.
Good grief what a weird period we are seeing.

[palotes]

This news is starting to be tiresome but the truth is that we are living through a historic moment from the point of view of the economy. This era will be studied in depth in the future. With quite bad prospects while maintaining a strong labor market and consistent demand and all this amid a technology industry that is collapsing. In one year, the shares of American technology companies have lost 7 trillion (7e12) dollars in valuation which is 5 times the GDP of Spain. And the bubble continues to burst. And just because of the rise in interest rates. To the manufacturers of GPUs you have to add that the miners have stopped buying.

And then there is what defaultuser says that we are also living through a paradigm shift in international relations with a cooling of globalization with increases in protectionism and a slow but continuous death of Reaganism. It is clear that we are living through a historic change and the manufacturers of GPUs are getting the first blow which, from my point of view, is well deserved. Let them burst for being greedy.

Let's see what next year brings and let's hope that the news continues to be negative only for Corporate America and not so negative for the rest but what is clear is that the perfect moment to buy a cucumber at a bargain price is approaching.

[defaultuser]

@palotes said in The GPU market at its lowest:

but what is clear is that the perfect moment to buy a cucumber at a bargain price is approaching.

That's the good part. Moreover, it may be that, faced with the impossibility of recovering the investment in current products and in order to stimulate the market, they may be inclined to anticipate the commercialization of the developments they have in the pipeline.
In general, everything will be advantageous for the purchase.

The bad part is that, faced with such an unusual situation, it is very difficult to make predictions about the future, or in other words, that we have no idea where this is going to go when it comes to making other business decisions, investment, employment, and so on.

[Clipper]

I think it was Micron, one of the largest manufacturers of wafers for m2 memory modules, said that it is going to reduce production because it cannot sell them and does not want to lower prices.
Nvidia is eating up the stock of the new generation because no one is buying them, we are talking about graphics cards of 2000€, which, as is normal, the general economy is not for certain waste.

As a curiosity, three days ago I bought a crucial m2 p5 plus of 500gs for 77€ (in theory on offer) which is the same price at which I bought the same model a few months ago, so let's forget about price drops.
And yesterday I read that crucial is going to release an m2 pci 4 model p3 (mid-range) with better speeds than the previous p3, but less than the p5 to gain market share.
Regards

[palotes]

Clipper, that's the classic attempt by cartels disguised as free traders to control prices. It works just as well as when a state tries to do the same. It ends up being a disaster unless it's a necessity like food or energy.

For dispensable products and services like hardware, they will manage to keep prices inflated if consumers maintain their purchasing power. The question is that if demand is already falling, it means that purchasing power has already been affected.

Here you have the savings capacity of Americans from 1960 to the present: https://fred.stlouisfed.org/series/PSAVERT

It's at historical lows because wages are not adjusting to inflation. Let's say that even if things stay more or less good, consumers' purchasing power will continue to decrease. With these prospects, manufacturers will not be able to control prices by strangulating the supply because there comes a point at which they get more benefit by selling more quantity cheaper than less more expensive. It's a matter of economies of scale. That's not counting when the 4 cats that manufacture each component are forced to really compete among themselves to survive the gale.

Only time will tell, but if the manufacturer's goal is really to manipulate prices, they are fighting against a force of nature that is difficult to dominate. If they are a little smart, they will be adjusting production just to avoid hoarding a stock that they won't be able to place. But price adjustments are coming anyway.

[jordiqui]

I don't know if it's at a low point, I imagine there are logistical problems, raw materials, etc., but when looking for a Ryzen Zen 4 configuration, I see a Ryzen 7. The listing only mentions the Z760 chipset, I think, a basic liquid cooling kit and now comes the good part: GeForce RTX 4080 16GB. When I saw the prices I didn't understand how they could sell the pc at the price they sell it for, I was flabbergasted. I had only seen those prices years ago on professional-grade graphics cards, but not for gaming. But what are those graphics cards doing in games like Call of Duty?