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Why Are Graphics Cards So Expensive Right Now?

You probably have noticed how costly graphics cards right now. Why? These are the main reasons why high prices exist.

It is difficult to find a new graphics card right now. All the available cards have high prices and are limited in availability, so it doesn’t matter if you’re looking for the next-generation card or the older model.

The current demand for graphics cards is far greater than the total supply. This is how it happened. Why can’t the supply keep pace with demand?

This article will discuss the main reasons graphics cards are so costly right now. These factors are not difficult to see. Some of these factors might be obvious, while others may surprise you.

 

1. Global Chip Shortage

Why is GPUs so costly? Economics, my dear Watson. Supply and demand, as well as the allocation of resources, all play a role in determining the cost or availability of goods and services, particularly when it comes to what the public can see and have access to.

The global shortage of chips is currently raging and could persist indefinitely. Semi-conductor chips are used in all things, including computers and airplanes. Due to this shortage, manufacturers around the globe have had to reduce or stop production.

This affects not only graphics cards but also other sectors such as laptops, phones and game consoles.

2. The COVID-19 Pandemic

COVID-19 has led to an increase in remote work and a decrease in people staying at home. This has led to a higher demand for personal electronics. Because the market is more hungry for GPUs than ever, GPU prices are currently high.

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Many people want to purchase electronic devices, such as tablets, smartphones and computers, whether they are using them for work or entertainment. This has led to a dramatic increase in demand for graphics cards. That is why graphics cards are so costly at the moment.

Broken supply chains are another consequence of the pandemic. These vital economic lifelines are compromised, which is why video cards become so expensive.

Lockdown restrictions have been implemented in many cities and towns around the world. They may restrict the flow of goods and people through the area. Graphics cards will likely be considered a luxury product when compared with other essential goods such as food and water. The math is easy.

If your city or town no longer offers graphics cards for local shops, you will have to search elsewhere if you wish to buy one.

People look to other markets for the products they require. Inflation, corruption and other indicators that indicate imbalance can then result from these outside markets. This is not to mention the situation in which the original market has been abandoned by this new wave of buyers.

This is the reason graphic cards are so costly right now. It’s partly COVID’s fault that there aren’t as many GPUs available as people who have the money, the means and the ability to purchase them.

 

3. US Tariffs on Imports

New tariffs were imposed weekly on imports from abroad during Trump’s presidency. This included a 25% tax on graphics cards from China. These extra costs are passed on to consumers by higher prices.

Biden’s Administration has not yet announced plans to reverse Trump’s China tariffs. Before moving forward with any new strategies, the team will reevaluate their existing trade agreements.

4. Cryptocurrency miners

Good graphics cards are essential for crypto miners. Cards are purchased for crypto mining rigs. These are computers that mine bitcoins. Why is GPUs so costly when there are more buyers?

It all comes down to how buyers view the market for available goods. Many crypto miners have very specific requirements about the graphics cards they require for their setups. The faster they can mine the card, the more desirable the higher-end cards.

These people have already entered the high-end graphics cards market and don’t plan to leave anytime soon. They are often well-connected and knowledgeable and have sufficient funds to purchase other companies and acquire the best of what is available before anyone else.

To be able to mine efficiently, crypto miners need cards with at least 4GB of video RAM. Many miners prefer 6-8 GB for their longevity and performance. This has made it more difficult to find cards with more video RAM than 4GB.

NVIDIA stated that it would limit crypto mining on its new cards to combat this development. They will only know if they succeed or not.

5. Scalpers Make a Profit Selling Hardware

The graphics card market is not being dominated by crypto miners. Scalpers have also entered the fray in the hopes of making a monetary profit, but they use different strategies to achieve their goals.

Scalpers sell goods to make a quick and often large profit. Graphics cards are a hot commodity right now, and can be resold at high prices to desperate buyers.

Scalper may sometimes obtain their stock by questionable means. Scalping in any form, however, is legal in many parts of the globe. The US does not have any federal laws against scalping. However, some states have passed laws to discourage it.

The Stopping Grinch Bots Act was unveiled by US lawmakers during the holiday season 2021. It aims to stop scalpers from using bots online to secure goods. This bill was not yet a law, and it was only a proposal at the time.

6. Performance and specifications that are better

Next-generation cards are made with advanced materials and top of the line designs. They are generally more expensive and harder to make than cards from previous generations. Why is GPUs so costly right now? Simple: Higher manufacturing costs.

Producing what you can afford is the only way to make a product. Producers must think creatively about ways to increase their production without sacrificing quality or quantity.

NVIDIA’s next-generation cards and AMD’s next-generation cards are pushing the limits of computer graphics. These cards represent a significant leap in GPU history, as they are designed to deliver high-quality graphics at historic large resolutions such as 4K.

You really do get what you pay for in many ways. Another factor to consider is your upgrade options.

Why are GPUs so expensive? When will the right time to buy ever arrive?

Right now, it is difficult to find a reasonable-priced graphics card. Most of the high-end cards have 4GB RAM or more, and crypto miners have taken them all. Scalpers continue to grab any remaining high-end cards. These cards are in short supply due to the global chip shortage and pandemic.

Some people might be willing to settle for a older card with less VRAM, while others may still be able to select from a variety of options. You might need to be creative or wait for this shortage to pass.

 

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