Nvidia, AMD and Intel could be 'lured into' dire chip shortage overcompensations

Investing in GPU stocks may be a bit of a trap

(Image credit: Pixabay - CorrieMiracle)

With the pandemic having sent the world into a tech buying frenzy, the chips inside our PC components have all but passed into myth. And as manufacturers scramble to fill the gap in supply, Jon Peddie Research has issued a warning about the dangers of overcompensation.

“The risk," says Peddie, "is that semiconductor suppliers will be lured into over-reaction and believe that suddenly 100s of millions of new users have appeared and the demand will stay high. That’s not only not realistic, it’s also not true—where are they coming from—not this planet?”

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Now, we're just coming out of a similar spike—this time thanks to a host of intermingling factors that toppled the market to form the tragic state of PC building we're in today—and investors are all aflutter in the fallout.

But Jon Peddie and company are convinced that pandering to the increased demand is a bit of a trap. Nvidia and AMD certainly appear to be a little more hesitant to throw their lot in with cryptocurrency demand than they once were, so perhaps they're already well-aware of the potential dangers ahead.

Having been obsessed with game mechanics, computers and graphics for three decades, Katie took Game Art and Design up to Masters level at uni and has been writing about digital games, tabletop games and gaming technology for over five years since. She can be found facilitating board game design workshops and optimising everything in her path.