GDDR6 Prices Keep Falling

In the preceding few months, the demand for graphics cards has markedly diminished, combined with the elevated inventory levels of storage, inducing a consistent plunge in the prices of GDDR6. For GPU manufacturers such as Nvidia and AMD, this signifies the procurement of VRAM at a reduced expense. However, gamers might find it a tad perplexing that although costs have been curtailed, this does not seem to translate to end products.

According to 3DCenter, the spot prices of GDDR6 have suffered a steep decline over the past one and a half years, plummeting to merely a quarter of their original value. For instance, an 8GB GDDR6 configuration scheme has descended to $27. Manufacturers prefer to directly sign contractual agreements with chip suppliers, with prices being fixed, leading to some disparity between the amount actually paid and the spot prices.

In comparison to 8Gb GDDR6 DRAM chips, it is currently challenging to ascertain the price of 16Gb GDDR6 DRAM chips. Manufacturers consider the VRAM configuration scenario of mainstream graphics cards, adhering to the traditional grading system most of the time, and models with double the VRAM capacity are usually reserved for the more lucrative professional graphics card market. To ensure compatibility, even if the prices of VRAM fall during the interim, GPU manufacturers are unlikely to impulsively alter the VRAM configuration.

Market research institutions foresaw the market price trends well over half a year ago, predicting a fresh round of price reductions for Graphic DRAM. However, related end-promotion activities merely serve to clear inventory, playing a limited role in boosting incremental demand. The reduction in price has not resulted in a surge in purchasing volume.