Graphics Card Sales Show Signs of Recovery: Rise in Shipments and Potential Impact on Prices

The graphics card market, which has experienced a prolonged slump, is finally showing signs of recovery. Desktop models, in particular, are flying off the shelves at a faster rate, indicating a positive trend in sales. In the third quarter of 2023, the overall shipments of graphics cards saw a significant increase compared to the previous quarter, reaching 71.9 million units, marking a rise of nearly 17%.

Increase in Shipments

The increase in graphics card shipments is undoubtedly a positive development. However, it is important to note that this growth is viewed as the “lowest year-to-year decline in half a decade,” as observed by Jon Peddie Research (JPR). While this is certainly an improvement, it still represents a decline compared to previous years.

Recovery in Desktop Graphics Cards

A closer look at the statistics reveals that desktop graphics cards are leading the progress. The growth rate for these models has surged by an impressive 37.4% from the previous quarter. This indicates a stronger demand for desktop graphics cards, potentially contributing to the overall increase in shipments.

Potential Impact on Prices

The sustained demand for graphics cards raises the possibility of prices following an upward trajectory. If the current trend continues, consumers might witness a rise in prices. However, it is crucial to exercise caution and avoid assuming that this uptick in shipments signifies a complete turnaround in the GPU market. Jon Peddie, president of JPR, warns against reading too much into these figures and emphasizes the need for a nuanced understanding of the market’s dynamics.

Uncertainty in Pricing

The substantial difference between the overall rise of 17% quarter-on-quarter and the impressive 37.4% growth in desktop graphics cards suggests that there is a credible chance that prices will not fall any further, even if they do not increase significantly. This indicates a level of stability in the market, potentially creating an environment where prices become more resilient.

Advantage of Buying Now

Given the potential for prices to rise, consumers who are in the market for graphics cards might benefit from making their purchases sooner rather than later. If prices indeed increase due to sustained demand, those who purchase now will have the advantage of securing their hardware at current price points.

NVIDIA’s Future Plans

Looking ahead, NVIDIA is expected to make crucial decisions regarding the configuration and pricing of its upcoming Lovelace GPU refreshes. With the positive trend in graphics card sales, NVIDIA might lean towards higher pricing for models such as the RTX 4080 Super and 4070 Super. This strategic move would capitalize on the improved market conditions while aligning with the company’s premium positioning.

Graphics card sales are finally experiencing a much-needed recovery, with the third quarter of 2023 showing a notable increase in shipments. However, it is essential to interpret these figures with caution and avoid prematurely assuming a complete market turnaround. The growth in desktop graphics cards indicates stronger demand, potentially impacting prices and leading to a forecast of stability in the market. As consumers consider purchasing graphics cards, an advantage exists in buying now to potentially avoid future price increases. Nvidia’s future plans add another layer of speculation and excitement to the market, as higher-priced models might be on the horizon. The road to a complete recovery may still be uncertain, but the signs of improvement provide hope for the future of the GPU industry.

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