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The global chip thirst may be coming to an end

The plunge in the price of graphics cards due to reduced demand is considered a signal that the thirst for chips is about to end, and the supply will be stable again.

Graphics card resellers in Vietnam, China and many other markets around the world confirm VGA prices are falling sharply Compared to the same period last year, there are models that have reduced by tens of millions of dong but still no customers. One of the reasons for this situation is that the supply is abundant again while the market’s demand is no longer great.

The sharp drop in graphics card prices is seen as a signal that the global chip thirst will end sooner than expected. “The chip crisis has crippled manufacturing industries from smartphones to cars. But things are changing, chipmakers are having to rebalance their business plans.” Reuters comment.

Reports from Intel, Qualcomm and some other units also show that they will have to reconsider how consumer spending demand is reduced due to inflation and the effects of China’s Covid-19 zero policy. and the Russia-Ukraine conflict.

Summit Insights Group analyst Kinngai Chan expects that when the graphics card market is abundant, the supply of some other chips such as processors and memory chips will be less scarce. The massive expansion of production scale by chip firms may also cause the market to face an oversupply of chips by the end of this year.

According to Sina, Graphics card prices in China are plunging like an avalanche, but users are still not very interested. Many people continue to wait for the next discounts. In addition, rumors related to the consolidation of the Ethereum network also affected the market. Cryptocurrency miners – one of the factors causing the global card thirst – are sitting quietly watching the market.

Reuters Citing Baird senior analyst Tristan Gerra, if electronics companies can buy cheap chips in the future, they will reduce inventories and limit hoarding, helping to stabilize supply and demand in the market. However, there are also some skeptics about the end of the chip crisis. Bank of America said that the declining purchasing power of cryptocurrency mining users will soon be balanced by new demand and that chips will continue to be a sensitive issue of the global supply chain.

Khuong Nha

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