To play video-intensive games, you need to possess a capable graphics card.
But day by day, the graphics card, aka GPU, becomes so expensive. The price of GPUs such as NVIDIA or AMD has been increasing rapidly for several reasons.
Therefore I investigated the topic and sorted out 11 reasons for which the GPU price was hiked. Also, in this article, I displayed when the GPU price can return to normal and the 5 best GPUs in 2022.
So read the entire content without skipping to learn why the GPU price is high and when it will become normal.
Let’s jump in!
Why is GPU Demand So High?
Due to the increased usage of the GPU, its demand has become so high recently. Gamers, content creators, game developers, and cryptocurrency miners use powerful GPUs daily. This extra usage improves the need for the graphics card; hence the price is also hiked.
Also, many promising video-intensive games have recently been out in the market. As a result, people who are not gamers are attracted to the mesmerizing games and buying GPU to play and experience those games.
The cryptocurrency price is massive now; therefore, miners use high-power GPU to generate more crypto coins. So that’s why the demand for GPUs is increasing rapidly.
Follow the next heading to learn why graphics cards are so expensive now and when the price will be normal.
Why are GPU Prices So High?
The graphics card(GPU) price is high due to Covid-19 value fluctuations, a less competitive market and worldwide chip shortages. Also, the GPU has become expensive due to Unethical Scalpers and increased international shipping costs. Mining cryptocurrency is also a reason for increasing GPU prices.
Let’s see those reasons briefly in the section below.
Here are the reasons why GPU prices are so high:
1. Covid 19 Pandemic
During the covid 19 pandemic, every electrical equipment price increased because of the unavailability of the electro component. That’s why due to the covid 19, GPU prices also increased.
Although the effect of covid 19 is slowly decreasing, the price is not reducing accordingly.
Also related to this guide how to Check if GPU is Working Properly.
2. High-End Specs and Boosted Performance
All the GPUs available now are more capable and compact with high-end specs. So those new GPUs offer a boosted performance.
Therefore, GPU manufacturers increase the price to match the specs and performance.
3. Lack of Competition
In today’s GPU market, two names are on everyone’s mind: NVIDIA and AMD. We all know the price drops in a competitive marketplace to increase sales.
But without the competition, the two shark companies sell their GPU at the price they suited fit. Hence the GPU price remains high.
4. Worldwide Chip Shortage
Currently, the world is facing a Chip shortage, so the price of all electronic components such as phones, laptops and GPUs is rising.
Semiconductors, also known as chips, are the components implemented on electrical devices for operation. But the scarcity of those semiconductors makes the price high for GPUs.
5. Increased US Tariff on Import
Trump’s administration increased the import tariff by 25% for china. Therefore, the GPU components price hiked in the US, which affected the worldwide GPU price.
After Biden took charge, there were no Import strategies taken by the government. So the increasing GPU price remains the same. However, it is rising rapidly now.
6. Cryptocurrency Miner
We all know about bitcoin, right? This bitcoin is a type of cryptocurrency, and there are more. Recently the price of cryptocurrency has risen ambiguously.
For mining that cryptocurrency, a high-power GPU is used. The miner continuously buys GPUs for crypto mining, and the supply shortens, therefore price hikes.
7. Unethical Scalpers
Scalpers are those who store the products at a low price and sell them when the price rises. For their reservation, there is a scarcity in the market for that product, and due to the unavailability, the product becomes expensive.
The same thing happens when unethical Scalpers stockpile the GPUs for some time. Then they sell them at a high price.
Also read, Why is My GPU Usage So Low.
8. Supply and Demand Problem
Sometimes, GPU manufacturers fall into equipment shortages because of global tension such as War or Epidemic. During that time, the supply of GPUs gets hampered. As a result, price rises.
So due to the supply and demand problem, the graphics card price gets so high.
9. Brand Value
When the users get a good experience from a GPU, the brand value of that GPU company increases.
Just like NVIDIA and AMD have already created a brand value for themselves. Likewise, when you want to purchase one of their GPUs, you have to spend some extra bucks for them.
10. Increased International Shipping Cost
Recently the whole world has been going through an economic crisis, and for that, the shipping cost increased enormously.
Because of the rise in shipping costs, GPU prices are so high now. Shipping through Asia to the US is difficult for ongoing US-China tension. Also, the UK moving from the EU is another reason for the shipping cost increase.
11. Unwanted War
We all know there is currently some uncertainty in Russia and Ukraine. Due to that war, all things price become untouchable. GPUs are not above the effects, and their price has also risen.
Also, there has been some tension between China and Taiwan recently, and China is the most prominent manufacturer of GPU chips. So the GPU prices become alarmingly high.
When will GPU Prices Return to Normal?
The alarming rate at which the GPU prices increase can not become normal soon. But the NVIDIA and AMD are releasing their new generation GPU this fall, and then the price might become normal. Also, if the government takes preventive measures against crypto mining, the cost of GPUs will drop.
Additionally, when the worldwide tension evaporates, economic sustainability will arise. As a result, the price of all the electrical components, such as GPU, will decrease.
Also, when new competitors come into the market and sell their GPUs at a low price, the GPU prices will return to normal.
Keeping all those aspects in mind, I can safely say that the price of GPUs will not decrease overnight. It will take some time, but eventually, if all the concepts are correct, the price will return to normal within a few months.
Related guide: how to resolve GPU overheating issues.
Which are the Best Graphics Cards in 2022?
Plenty of graphics cards that claim to be the best are available on the market. But for your assistance, I sorted out the top 5 ones from them.
Let’s find out what those GPU models are and their ratings.
Here is the list of the best 5 GPUs of 2022: 
- MSI Gaming GeForce RTX 3060, Rating: 9.8/10.
- XFX Speedster QICK308, Rating: 9.7/10.
- ZOTAC Gaming GeForce RTX™ 3070 Ti, Rating: 9.6/10.
- PowerColor Red Dragon AMD Radeon™ RX 6800 XT, Rating: 9.5/10.
- ZOTAC Gaming GeForce RTX™ 3080, Rating: 9.2/10.
The above-stated GPUs are selected solely for their performance. You can choose the best-suited one if you want a smooth and pleasant GPU experience.
FAQs
Why are GPUs so expensive in 2022?
Due to the worldwide tension, corona pandemic and economic crisis, the GPUs will be so expensive in 2022.
Will GPU prices drop back to normal?
According to the tech analyst, GPU prices will drop back to normal at the end of 2022. So, stay with the latest tech news to know the latest updates.
Will graphics card prices drop in 2023?
Yes, the graphics card prices will drop in 2023 because of the launch of the new generation of NVIDIA and AMD GPUs.
Final Thoughts
Graphics cards, also known as GPUs, are essential for a modern computer.
But their prices are now so high due to several reasons like Covid-19, High-End Specs, Lack of Competition, Worldwide Tension and many more. This article states all the reasons, so read it thoroughly to know.
Also, the analysis of when the price can drop and the 5 best GPUs of 2022 are displayed in this content.
How can I further assist you? Let me know in the comment box.
