#Graphics card shortage drivers

And the fact that the industry is mainly dominated by two manufacturing moguls, AMD and Nvidia, did not help either in meeting the market’s increased demand. Graphic Card Shortage 2022Ģ021 was one of the most brutal years for GPU buyers, especially consumers hoping to get a reasonable price, as values soared, and availability dropped. This, too, played a critical role in magnifying the intensity of the GPU shortage crisis. Notably, such large-scaled cryptocurrency mining can only be doable through the implementation and operations of thousands of GPUs all at once. This dramatic shift led to heightened cryptocurrency mining and escalated the demand for computing power, which is delivered by GPUs. This increase in mining pushed people to take matters into their own hands and start mining cryptocurrencies on their own to increase profit.

This means more mining to validate transactions as cryptocurrencies such as Bitcoin and Ethereum gained momentum globally and became popular, amplifying their acceptance. This move stemmed for retailers to refrain from damaging their image by being associated with a product they cannot move in the market, simply to be able to receive the merchantable GPU.Īt that same time, another factor played its role in intensifying the damaging effect of the increased demand, cryptocurrencies.ĭespite being one of the most financially traded assets in the last decade, the pandemic has dramatically increased the populating of digital assets. From there, the output of GPU halted, resulting in failure to meet customers’ demands, as some of the most prominent GPU manufacturers were faced with the dilemma of having to focus on the less demanded product to maintain the production of obtaining in return the inflated demanded GPU. With semiconductor manufacturers failing to meet the market’s demand, GPU manufacturers could not meet their manufacturing and distribution deadlines as fewer semiconductors mean less graphic card production. After the pandemic caused critical shipping problems for manufacturers and distributors, the supply chain experienced a fracturing occurrence resulting in a remarkable failure to meet the market’s demand. In fact, one of the leading reasons that led to the mushrooming of GPU prices is the chip shortage itself. The COVID-19 pandemic is not the only reason that drove the intensification of the GPU crisis. The answer to those asking, “why is there a shortage in GPUs?” is that it all started with the coronavirus global blow.

#Graphics card shortage drivers

An increase that would later be determined as one of the main drivers of the GPU shortage, extending it even further as the demand from crypto miners maintained throughout companies’ release of their latest series of GPUs. Manufacturers of graphic processing units (GPU) were exceptionally vulnerable to the economic outcomes of the pandemic, which was also catastrophically affected by the ponderous cryptocurrency price increase. One industry, in particular, witnessed the most damaging crisis in its history. After the COVID-19 crisis took the world by surprise, global industries suffered the wrath of the pandemic on the economy.