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ASRock Says China Crypto Demand Waning, GPU Prices Dropping: Report

(Image credit: ASRock)

According to a report from DigiTimes, ASRock is swimming in cash and soon expects to make even more. The company says it expects its sales to increase even though graphics card pricing is dropping and demand for GPUs for Chinese cryptomining operations is waning. The company also expects the supply of AMD GPUs to improve as more substrate production capacity comes online.

ASRock's predictions could prove to be good news for enthusiasts waiting out what is presumably the worst GPU shortage in history. The potential for reduced GPU pricing on the near horizon is certainly good news, but reduced Chinese cryptomining demand is also encouraging. China's recent cryptomining bans could spur miners to sell off GPUs on the second-hand market, drastically improving overall supply. For perspective, miners are thought to have purchased 700,000 GPUs in the first quarter of this year alone. 

According to the report, ASRock also expects higher production rates for AMD GPUs in the second half of this year thanks to capacity adjustments and increasing supplies of substrate materials. 

ASRock reported a net profit of $17.88 million for the first quarter of 2021, up 39.7% sequentially and 167% year-over-year, making Q1 of 2021 the most profitable year for ASrock ever. Thanks in no small part to the insane demands put on the technology industry as a whole.

Unfortunately, ASRock motherboard shipments have been underperforming thanks to shortages of both Intel and AMD CPUs. ASrock doesn't expect that situation to improve until Q4 of this year.

It's great to hear that the graphics card market could make a small comeback later this year. But it's fully possible that there could only be a partial recovery on the near horizon, and we won't see a full return to normal graphics card pricing and supply until next year. We've reached out to ASRock for additional detail and will update as necessary.