Their supply fell to a record low, but demand fell too.
According to industry sources, the supply of video cards and motherboards fell to a record low.
The reason was the spread of coronavirus. At first, it seriously affected production and disrupted the supply chain, and then brought down demand. Allegedly, in China, demand in annual terms fell by 50% and is unlikely to return to its previous level until July. A similar situation is observed in other countries.
Market observers expected a seasonal increase in demand in the third quarter of 2020, but it may not be, and companies such as AMD, Intel and Nvidia will not be able to fulfill sales plans for this period of time. Moreover, a decrease in demand can lead to lower prices for components if it lasts longer than production needs to increase supply volumes again.