High risk of shortages and price increases for graphics cards by 2022!

Are you looking for the best computer hardware to boost your PC's performance? Then you couldn't have missed the graphics card shortage. Victims of their own success, the RTX 30 series cards are still out of stock on many online retailers. But where have all the graphics cards gone? What's causing this crisis, and what can we expect in 2022? We'll take a closer look at this hot topic in the world of hardware.

The graphics card shortage: a crisis that has lasted for several months

The high-tech market has been experiencing a major shortage for just over a year. This affects not only graphics cards, but also various materials and even some consoles.

From their release in late 2020, Nvidia's RTX 30 series graphics cards experienced phenomenal demand. This surge in demand proved too much for supply to meet, leading to rapid stock depletion. Following the laws of supply and demand, prices naturally began to rise. This phenomenon spread to other manufacturers, such as AMD, the other industry leader.

The cryptocurrency at the root of this shortage 

One could easily attribute the scarcity of RTX 30 cards to manufacturers' poor forecasts. But the situation is much more complex.

The first thing to highlight is the role of cryptocurrency. It's not just gamers who want to improve their PC's performance. Cryptocurrency miners also represent a significant target market for graphics cards. They need substantial GPU power to continuously improve their computing speeds. Many have rushed to buy the latest generation of graphics cards.

Good to know: If you're looking for graphics cards for mining, check out the latest AMD graphics cards for mining that are still in stock!

The impact of Covid

On the other hand, COVID has obviously had an impact on the shortage of graphics cards, and for several reasons.

First, the video game market exploded during the crisis. In France alone, in 2020, the sector's revenue increased by 11.3% compared to 2019. This data reflects the significant need for entertainment among the public during lockdown.

On the other hand, the crisis has also hampered supply. The health situation has both slowed down the process and increased the prices of materials and transportation. The entire logistics chain has been affected.

"Scalpers" or price escalation

Shortages and price increases have become entrenched in recent months. Scalpers have exacerbated this trend. These speculators identify emerging trends and buy up promising products in bulk. They then resell them at higher prices to make a profit. Graphics cards, of course, have not been spared.

A trend that is confirmed today

Since their release, graphics card prices have steadily increased. However, a period of relative calm occurred at the beginning of summer. This improvement was short-lived, as prices skyrocketed again by the end of summer. By the end of October, they had already returned to 200% of their original price.

When can we expect to be able to get a graphics card?

Manufacturers' predictions do not point towards a favorable recovery for the end of the year, nor for 2022. According to Colette Kress, Executive Vice President and Chief Financial Officer of Nvidia: "Overall demand remains very strong and continues to exceed supply, while inventories in our distribution channels remain quite low.".

On the other hand, prices continue to climb on platforms like eBay.

The Christmas holiday season is unlikely to improve matters. It's a prime time for shopping, and the hardware and video game industries are no exception.

Nvidia CEO Jensen Huang announced that the current situation will continue throughout next year, with a return to normal expected in 2023. Even the upcoming Nvidia Lovelace graphics cards are likely to be in high demand.

One solution to consider: getting a PC equipped with a new generation graphics card.

Conclusion

The current graphics card shortage has caused a major price surge. This trend seems set to continue in the coming months, according to various statements from manufacturers. Nevertheless, there's no need to lose hope! An improvement in the PC component is possible. The arrival of new models and the resolution of the Covid crisis could provide a welcome opportunity for all computer hardware enthusiasts.