May 19, 2022

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ZD Technology: Why (finally) the price of graphics cards will fall

Hello everyone and welcome to ZD Tech, ZDNet’s Daily Editorial Podcast. my name Guillo seriesToday I will explain to you Why the price of graphics cards will finally fall.

After five consecutive years of rising prices for GPUs, the “graphic processing unit” is probably not yet affordable, but in any case, a graphics card can be purchased.

But before you understand the reasons for this decline, I want to explain to you why the price of graphics cards has continued to move upwards over the last five years.

Graphics cards for mining

Firstly, since graphics cards are used to mine cryptocurrency, cryptocurrency starting with Bitcoin has been very hot lately. This new application of graphics cards is growing rapidly and has created a real shortage of GPUs in some recent times.

Added to this is the recent shortage of electronic components needed to make graphics cards. Supply issues are directly linked to the Govt-19 infection, which is affecting Asian countries that produce these essential components for computer equipment.

Conclusion: The explosion of prices. The average price of a graphics card between 2011 and 2014 was $ 260. The rise of cryptocurrencies raised this limit to $ 400 between 2015 and 2019. Then in 2021 it was $ 770.

Why is the price going down now?

New chips

Already, because the factories are running at full speed. In 2021, 50 million cards were sold, and in 2020 42 million cards were sold. So, clearly, productivity is increasing despite economic difficulties.

Later, new dedicated chips reduced the cost of GPUs as cryptocurrency mining, or synthetic intelligence, made it possible to perform all specific tasks previously assigned to graphics cards. Intel, for example, recently announced that its next ASIC chip, named Bonanza, will be dedicated to cryptocurrency mining.

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Also on the artificial intelligence side, with the advent of new types of processors, the NPU – the neural processing unit – is now increasingly exempting graphics cards from this task.

Intel goes to war

Finally, a third factor explains the fall in graphics card prices. Intel is entering the battle for dedicated GPUs against AMD and Nvidia this year. That is, Intel has little or no presence in this segment until now.

Intel estimates that it will market about four million GPUs this year, which is enough to radically dissipate the heat on the graphics card.