Now that the cryptocurrency fad is over, Nvidia and AMD have a serious problem lying ahead of them. The GPU vendors overestimated the cryptocurrency demand in 2018 and as a result, there has been an oversupply of graphics cards in the market. This and the ample amount of GPUs sitting in the inventory has led to retailers ordering fewer graphics cards from vendors.
According to reports, both AMD and Nvidia saw a decline in GPU shipments from Q3 2018 to Q4 2018 by 6.8% for AMD and 7.6% for Nvidia. 27.78% of all PCs had discrete graphics cards in them, which is down by 3.83% from last quarter. This trend of decreasing sales has continued year to year.
Joe Peddie Research has estimated that this oversupply will continue for another half year.
On the bright side, GPU prices have fallen, and consumers can buy mid-range GPUs for lower $200 range.
Given the fluctuating crypto-market and overwhelming supply of GPUs, it is quite unlikely that this issue will resolve anytime soon.
Further Reading: