Earlier this month, AMD announced that they are aware of the graphics card shortages and boosted prices in the market and they will try to increase the graphics card manufacturing.
Recently, AMD released their earnings from the last quarter of 2017 an announced of $1.48 billion revenue. This corresponds to an about 33 percent year-on-year increase. In our Cryptocurrency News February 2018 post, we mentioned the price increase in the NVidia and AMD graphics processing units (GPUs). Over the years some of the most popular NVidia graphics cards had dramatic price increase:
- GeForce GTX 1050 Ti – 27 percent
- GeForce GTX 1060 3GB – 86 percent
- GeForce GTX 1060 6GB – 89 percent
- GeForce GTX 1080 Ti – 59 percent
Similarly, AMD also had to deal with graphics card shortages and price increases. It is known that this high demand was mainly driven by end-users that mines cryptocurrencies like Ethereum. AMD launched two cards from RX Vega series (Vega 56 and Vega 64) in August 2017. It is also reported that two graphics cards in that line have been sold out.
Cryptocurrency mining is becoming extremely complex for the architectures of the graphics cards as their performance rises and approaches its limits. Competition in mining the coins is also impacted by the number of coins available. For instance, it is known that there are 21 million Bitcoins available in total and currently 17 million of them are in circulation. Moreover, as more hashing power is deployed by the network of miners, finding a new block becomes more difficult.
CEO and President of AMD Dr. Su recently stated that their manufacturing is not limited by the silicon materials they are using. Nevertheless, there is a shortage of GDDR5 and HBM2 memory, which is used in the RX 400 and RX 500 series cards. Dr. Su added that they intend to work through this limitation with their memory suppliers. Beyond any doubt, if AMD can increase their production level and solve graphics card shortages, both miners and gamers will benefit from this.