Asus says demand for graphics cards used to mine cryptocurrency is dying

In short: Asus has confirmed what many in the PC industry had suspected: demand for graphics cards used for crypto mining is “disappearing”. That’s the good news. The bad news is that PC demand is also down, by around 10%, but next year gaming laptop sales will pick up.

According to The Reg, Asus CEO SY Hsu made the comments during the company’s first quarter earnings call. He noted that the drop in demand for GPUs used for mining was mainly due to the cryptocurrency industry criticizing the amount of power consumed by mining.

Hsu is likely referring to Ethereum’s upcoming move from its current proof-of-work model to proof-of-stake, which in theory will end the requirement for high-end GPUs to mine the tokens. Ethereum developer Tim Beiko recently confirmed that the previous change date of June is no longer happening, although he thinks it will “probably” happen in the next few months.

Hsu also warned that PC sales would return to the pre-Covid days of slowing growth in the second quarter and fall 10% quarter-on-quarter, in part due to lockdowns in China. Component sales, meanwhile, are expected to fall between 10% and 15%. The CEO was more optimistic for next year, however, predicting increased sales of gaming laptops, which he said young people see as an important part of home entertainment technology.

Another factor will undoubtedly be the collapse of the cryptocurrency market. Nearly $1 trillion has been wiped from the cryptocurrency markets this week, and low crypto values ​​mean lower mining profitability, which in turn increases GPU availability and drives down prices. Graphics cards are already closer to their MSRP than they have been since the crisis began, and falling mining demand is driving their prices down even further.

Another interesting part of Hsu’s speech concerned the global component shortages that have plagued the industry for so long. “When it comes to ICs, supply is at a manageable level,” he said, with power management chips being the exception. Shortages of camera components and circuit boards are proving to be a problem, as are congestion at US ports and shortages of containers and truck drivers.

“The current situation is not getting worse, but the constraints remain. Therefore, whether you look at shipping rates or air freight, the cost remains high. Of course, high shipping costs create cost pressure for us. But still, everything is at the expected level and manageable. »

Hsu’s remarks are backed up by this week’s report that desktop processor shipments saw their largest quarterly decline: 30%.

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Asus says demand for graphics cards used to mine cryptocurrency is dying

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