Earlier this week, NVIDIA, one of the global leaders of graphics processing units (GPUs) and artificial intelligence (AI) lost almost $600 billion in market cap, which is the single biggest drop suffered within the span of one day by any company in US history. The company’s stock price plummeted by an entire 17% before it managed to rebound over 8% the following day. This instance of explosive volatility has raised questions among the general public about whether GPU price will be affected or not.
The answer to that question depends on the reasons behind the stock crash and consumer demand. If NVIDIA’s stock decline results in slowing AI or gaming demand, the company might choose to lower GPU prices to boost sales and maintain revenue. The company could introduce direct price cuts to stimulate sales. Investor pressure could also push NVIDIA to move excess stock quickly, which would lead to discounts for customers as retailers work to clear excess inventory held.
On the other hand, if the reason behind the stock drop is found to stem from supply chain disruptions, GPU prices could rise due to reduced availability. Supply chain disruptions limit GPU production, which leads to increased prices due to a limited product stock. Then again, NVIDIA could also prioritize AI and data center markets, thus only reducing the supply of gaming GPUs, which is something that retailers and scalpers would take advantage of to keep prices elevated.
Nonetheless, in the end, NVIDIA is a company with a diversified business model, with revenue streams coming from AI, data centers, and professional visualisation. So, while NVIDIA’s stock fluctuations may raise speculation about GPU prices, in reality it is unlikely to cause immediate, actionable price changes. Rather, the key factors influencing GPU pricing will continue to be demand trends, supply chain stability and NVIDIA’s strategic response to those factors. So for now, consumers should continue to watch market developments rather than expect immediate discounts.
Sami is a contributor at The Daily Esports.
