However, Asus expects demand for GPUs from gamers to remain robust, so the pricing may not necessarily normalize.
In another positive sign for the GPU market, Asus is noticing that demand for PC graphics cards from cryptocurrency miners is on the decline.
The company’s co-CEO SY Hsu made the comment during an earnings call(Opens in a new window) on Wednesday when he was asked about how graphics cards pricing has been falling in recent weeks.
“Because the demand for cryptocurrency mining on GPU shipments has been slowly coming down, the demand for graphics cards across the market is normalizing,” he said.
According to Hsu, the cryptocurrency community is losing interest in buying graphics cards due to how Ethereum plans on phasing out GPU-based mining later this year. It’s a trend he expects other cryptocurrency projects to follow, citing the need to cut down on energy emissions.
Hsu also made the comment as the value of many cryptocurrencies has been plummeting. The price of Ethereum fell to $1,770 this morning, down from $4,600 back in November. This has prompted some Ethereum miners to say(Opens in a new window) they’re retiring from the market due to the low profitability.
But even though miners are souring on buying GPUs, prices for many products could still remain higher than normal. “Because the demand from cryptocurrency is disappearing, it’s made us wonder if the pricing for GPUs will also normalize,” Hsu said. “In reality, the demand for gaming is still strong, so we still don’t think we can necessarily meet all of the demand.”
Others have been more optimistic on pricing for GPUs, citing the improved supplies. Last week, PC accessory maker Corsair predicted costs for desktop graphics cards will both normalize and even dip below the manufacturer’s suggested retail price in the coming weeks.
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I’ve been with PCMag since October 2017, covering a wide range of topics, including consumer electronics, cybersecurity, social media, networking, and gaming. Prior to working at PCMag, I was a foreign correspondent in Beijing for over five years, covering the tech scene in Asia.
I’ve been working as a journalist for about 15 years—I got my start as a schools and cities reporter in Kansas City. Amazingly I’m still here. Lately, I’ve been following SpaceX’s Starlink network, emerging online cyber threats, and the PC graphics card market (which led me to camp out in front of a Best Buy to get an RTX 3000). I’m always eager to learn more, so please jump in the comments with feedback and send me tips.
My first video game console: a Nintendo Famicom
I loved my Sega Saturn despite PlayStation’s popularity.
The iPod Video I received as a gift in college
Xbox 360 FTW
The Galaxy Nexus was the first smartphone I was proud to own.
The PC desktop I built in 2013, which still works to this day.
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