GPU Prices Expected to Skyrocket in 2020 – Time for an Upgrade?
GPU Prices Expected to Skyrocket in 2020
If you have been planning to upgrade your GPU for whatever reason, you may want to do it as soon as you can. It appears that graphics cards are expected to skyrocket in price in 2020.
According to the TrendForce market research firm, there is expected to be a “sharp upturn” in graphics DRAM prices in first quarter of 2020. Server DRAM prices will see the biggest spike in price due to supply constraints by unstable yields of 1x-nanometer processes.
Graphics DRAM prices will see a corresponding sharp rebound. Graphics DRAM is more sensitive to demand change than other types of memory products, so its price fluctuations can be dramatic as well. With OEM clients raising their stock-up demand, Graphics DRAM contract prices are projected to increase by over 5 percent QoQ, the highest among all memory products.Arvil Wu, TrendForce analyst
There are a number of factors as to why GPU prices could skyrocket in 2020 based on overall market demand. For starters, we’re starting to transition from GDDR5 to GDDR6 memory chips, with there being an expectation on production boosts for the latter. The GeForce RTX cards and AMD Navi cards use GDDR6 memory.
Furthermore, 2020 will see the launch of both the PlayStation 5 and Xbox Series X. Both consoles use AMD Navi-based GPUs, and both companies will definitely want to manufacture enough consoles to meet the demands of the gaming market at launch.
As such, there will be higher demand than supply, which will inevitably lead to prices skyrocketing for GPUs, particularly those using GDDR6 memory. Graphics DRAM is said to have higher production cost per chip, which resulted in it being the group of memory products to incur operating loss for suppliers for the past several quarters. This led to adjustments made in order for suppliers to start profiting.
Keep in mind that this does not guarantee that there will a price hike. Anything can happen in the market, but this the more likely prediction to come true. With competition growing fierce between NVIDIA and AMD, and with Intel creeping up as a 3rd competitor in the graphics department, we may see some interesting business strategies implemented in 2020.
Pokdepinion: Just when I was planning to save up for a new one, I might just need to buy it in the next few days. Well, guess I’ll be eating bread for a few months.