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Nvidia and AMD are shipping less GPUs because retailers are sitting on plenty of inventory

It doesn't seem like the market will pick up anytime soon, either.

In early 2018, both Nvidia and AMD were rushing to deliver more GPUs to the market as crypto mining market was at its hottest. Because of the mining collapse, there are a lot of retailers with overstock of graphics cards, according to intelligence firm John Peddie Research.

Jon Peddie Research has been tracking GPU shipments from AMD, Intel and Nvidia. In the research, they note that all three companies saw a 2.56 percent decline in shipping from Q3 2018 to Q4 2018. This shouldn’t come as a surprise because of the mining decline. AMD was down 6.8 percent, Intel was down 0.7 percent, and Nvidia was down 7.6 percent.

“The channel’s demand for add-in boards (AIBs) in early 2018 was out of sync with what was happening in the market,” Jon Peddie Research founder Dr. Jon Peddie said. “As a result the channel was burdened with too much inventory. That has impacted sales of discrete GPUs in Q4.”

In terms of year-over-year, GPUs saw a decrease of 3.3 percent in shipment. There was an 8 percent increase in notebook GPUs, but it wasn’t enough to offset the 20 percent decline in desktop GPUs.

It doesn’t seem like that the market and supply chain will stabilize anytime soon. “[The effect on sales] will likely be evident in Q1 and Q219 as well,” said Peddie. It’s likely that we may see some interesting promotion deals from retailers like Newegg and Best Buy. It’s definitely worth keeping an eye on these retailers.



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