Why it matters: With the constant barrage of bad news almost how long the fleck shortage is predicted to last, here's something that should put a smiling on gamers' faces. ASRock believes graphics card prices are falling as a event of China'due south crackdown on cryptomining. Additionally, shipments of AMD GPUs are expected to better as substrate production chapters increases.

It was back in May when a Chinese State Council committee led by Vice Premier Liu He announced the crackdown on virtual currencies every bit function of efforts to curb financial risks. Information technology was the beginning time China's chiffonier targeted mining, a massive business in a country that accounts for up to seventy% of the world'south crypto supply.

Clamping down on Chinese cryptomining is having an effect on demand for graphics cards in the country. To requite you an idea of how much impact the exercise has on the market, 700,000 graphics cards that shipped globally in the beginning quarter ended upwardly in the hands of miners. That equates to around 25% of all graphics cards shipped between January and March.

BTC's price has dipped by nearly $27,000 since mid-April

DigiTimes reports that ASRock is confident near its sales and profits in Q2 thanks to potent demand for graphics cards, industrial PCs, and servers. It expects sales to grow sequentially in the third quarter despite the global chip shortage.

We've long known that miners are exacerbating graphics cards' availability problems. But with Mainland china's crackdown and BTC's cost still below $40,000—partly considering of Elon Musk—demand in the country is cooling. At that place's too the prospect of miners selling their cards on the second-manus market place, thereby improving supply.

Some other section of the report that gives cause for optimism is ASRock's prediction that AMD GPU shipments will improve in the second half of the year due to capacity adjustments and increasing supply of substrates. Team red dominate Lisa Su recently said she believes its CPU shipments will improve subsequently in 2022, could the same be true of its GPUs?

Like many tech companies, unprecedented demand has boosted ASRock's lesser line. Its cyberspace profit came in at a record $17.88 1000000 in Q1, upwardly 167% YoY. Graphics cards will account for 20% of ASRock's second-quarter revenues while motherboards grab 50%. However, its mobo shipments are suffering due to shortages of Intel and AMD CPUs, a problem it says will not meliorate until the fourth quarter.