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How does the GPU Supply Chain Affect Custom Computers?

Graphics, Industry

A More Consumer Friendly Future for Graphics Card Supply

Current state of supply and how it affects custom computers

Currently, Most GPUs are within $100-200 over MSRP as the overwhelming demand brought on by the Covid working from home demand combined with Ethereum mining and general usage demand is beginning to calm down. This has made purchasing a GPU for your custom computer a bit more paintful than it usually is. Supply chain limitations have been a smaller factor (but still considerable) than Most think. Nvidia and AMD shipped 12 million GPUs in Q1 alone, with record highs only being as much as 16 million in 2018. So while both manufacturers and consumer alike would like to see more graphics cards being manufactured and shipped, there has been no lack of effort and the supply is nothing to scoff at. This generation of products has been one of the most desirable performance offering since perhaps 2016 with the release of NVIDIA’s 1000 series, with the 2000 series largely being a disappointment to most due to the price/performance ratio and not very much in the way of rasterization gains.

Factors to consider in the next several months when buying your custom computer

Custom Computer with RTX 3080 White Graphics Card
With Supply chains continuing to normalize thanks to working conditions normalizing with Covid precautions winding down cards will continue to come nearer to MSRP as supply will become increasingly steady, also with the most urgent consumer demand having satiated their needs with above MSRP purchases most who remain are waiting for better deals. Consumer expectations of lowering prices will be multiplied exponentially if Ethereum’s migration to proof of stake is successful, which is estimated to happen in the fall. As of the time of writing there are no other proof of work tokens that could absorb even 1/5th of the Ethereum networks current hash rate. If the migration is successful, we could see current generation graphics cards for significantly less than MSRP on the used market.

It is rumored that despite still massive demand for current generation graphics cards we could be seeing next generation entries as soon as October.   This is due to how the GPU supply chain works, there are a lot of moving pieces to the puzzle and manufacturers can’t simply delay things any more than a few months even if they wanted to. Plans for graphics cards, or even CPUs, are set into motion 3-5 years in advance and hold fairly true to the schedule set forth. As such the downwards pressure on pricing thanks to new supply of next generation units as well as an abundance of last (current) generation models flooding the used markets with Ethereum mining coming to an end, we should be seeing abundant supply with good pricing before the year is out.

GPU Supply Chain and Your Custom Computer Order with AVADirect

We’re so excited to see Graphic’s Cards come back in stock and order processing times return to normal. The graphics card is at the heart of every custom Gaming PC, Laptop, or Workstation. While supply begins to return to normal, we’ll see pricing on these ultra rare cards drop, which will be passed on to you, the customer!

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