Analyst: Sales of graphics processors could halve next year

Morgan Stanley analyst Joseph Moore suggests that the sale of GPUs in 2018 could be significantly reduced. Especially for processors of the supplier AMD, he predicts a slump of up to 50%, and competitor Nvidia will suffer from the decline.

Morgan Stanley market analyst Joseph Moore predicts a slump in AMD and Nvidia GPU sales for 2018. Especially for AMD he prophesies a difficult year and halves the sale in prospect. The reason for this is that it is becoming increasingly unprofitable to use these GPUs to mine cryptocurrencies and, in the future, to ignore users who have purchased processors for this reason.

Already up to now one can observe that it is less and less worthwhile to operate mining with graphics processors from AMD and Nvidia, as the payout to crypto-miner steadily decreases. In addition to the increasing mining difficulty, there are also various software updates that have been carried out in the course of various hard forks and that make conditions difficult for miners. Just one example of this is the reduction of the distributed ethers per geminated block from 5 to 3.

In general, Moore expects that cryptocurrency mining will decline significantly in the near future. This is 2018 completely opposite sign as the now temporary 2017. Just a few months ago, both Nvidia and AMD reported an extreme high. In the S & P 500's ranking, stocks of the two companies were in first two places - the result of an unprecedented price rise during the period of the previous 12 months. At that time, this was largely due to the high demand for mining-grade GPUs.

To what extent the Morgan-Stanley forecast will prove to be true and whether the market for mining graphics processors will actually collapse completely, can not be determined with certainty at present. However, it can not be denied that it has ever been more profitable to mine Ethereum and other cryptocurrencies.