Video card pricing to drop 20 percent in July?

Sources in the upstream supply chain told DigiTimes that video card suppliers are planning to cut prices in an effort to clear their inventory. Due to the big drop in cryptocurrency prices, demand for video cards has taken a big hit and this will reportedly result in an average price drop of around 20 percent in July.

The sources pointed out that graphics card prices are expected to see an average drop of around 20% in July, while the dramatic slowdown in orders for mining ASICs will also negatively affect revenues at Taiwan Semiconductor Manufacturing Company (TSMC) as well as its IC design service partners, such as Global Unichip, in 2018.

The site heard the global graphics card market currently has an inventory of around "several million units", and that NVIDIA is sitting on around one million GPUs. Unfortunately, the report doesn't mention with normal levels are.

Another factor that will impact prices is the miners will try to offload their used cards on the second hand market.

The DigiTimes report also claims that 7nm and 12nm GPUs from NVIDIA are expected to be delayed to late Q4 2018. This backs up earlier stories that NVIDIA delayed the launch of its next-gen gaming GPUs to ensure inventory levels can first normalize.