Nvidia, AMD GPUs seeing 'consistently lower pricing,' but rate of decline has slowed: UBS
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Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) have seen "consistently lower pricing" for their GPUs over the past few months, but the rate of decline has slowed down, investment firm UBS said on Tuesday.
Analyst Timothy Arcuri used the firm's Evidence Lab to keep track of secondary market sales in the U.S. of Nvidia's (NVDA) GeForce RTX 3000 and AMD's (AMD) Radeon RX 6000 from April to July and found that Nvidia's chip prices fell an average of 26% during the time period, while AMD's (AMD) declined 29%. 
The data also noted that prices have fallen below MSRP, meaning that supply has caught up with demand and certain customers are clearing out inventory ahead of new products from the semiconductor companies. 
Arcuri added that the decline in cryptocurrencies has played a part, but the stabilization in the secondary market has coincided with Ethereum's merge, if only temporarily. 
"We believe the slowdown in MoM declines was partially driven by a rebound in crypto pricing in July, following a sharp correction in April/May, which likely slowed the exit of GPU miners from crypto networks," Arcuri wrote in a note to clients, adding that the aggregate computational power of the Ethereum network stabilized along with a recovery in the price.
With the proof-of-stake switch set for the middle of next month, Arcuri added that there is likely to be "another exodus of GPU miners from the network," pressuring GPU prices on the secondary market even further. 
Nvidia (NVDA) is scheduled to report second-quarter results after the close of trading on August 24.
Last week, investment firm Citi maintained its neutral ratings on Advanced Micro Devices (AMD) after the bank pointed to continued declines in notebook shipments.