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Likely some of both. Many of the costs are going to the supply-chain bottlenecks, IE: meat packing plants, lumber mills, container ports, chip manufacturers.

Likely some of both. Many of the costs are going to the supply-chain bottlenecks, IE: meat packing plants, lumber mills, container ports, chip manufacturers. Demand is high and it's hard for new supply to be brought online so those in the right position benefit significantly. For example AMD and NVDA revenue up 50%+, income 100%+ Eventually these high margins will attract competitors and bring down the margins but it takes quite awhile to get a chip fab up and running, and similar with meat-packing, lumber mills, etc.

ChuckNorris89 5y ago
>For example AMD and NVDA revenue up 50%+, income 100%+ Eventually these high margins will attract competitors and bring down the margins For those examples that is false hope. You can't just spring up a new competitor in the GPU filed out of thin air and expect it to work; Nvidia and AMD duopolies are so far ahead into the game experience wise that no startup could ever catch up no matter how much money you throw at it (even AMD is having a hard time keeping up with Nvidia and they've been at it for 30 years). Not to mention the insane patent minefield that protects them from competition. Even Intel, a trilion dollar company with experience, patents and fabs can't catch up with the other two.
- ikrenji 5y ago
  intel is literally getting into the GPU market 2022
  - ChuckNorris89 5y ago
    It is, but performance/value remains to be seen, which brings me back to my point that even the Intel juggernaut faces un uphill battle in this space vs Nvidia and AMD. Granted, during the current shortage, basically any GPU will sell regardless of performance/value proposition which makes it very easy for Intel to enter the market right now, however, 2-3 years ago, when Nvidia and AMD GPUs were affordable and available everywhere, nobody would have ever considered buying Intel discrete GPUs as even their integrated ones were not well received.
  - lelanthran 5y ago
    > intel is literally getting into the GPU market 2022 Haven't they always been in the GPU market? Sure, they don't compete on top-end GPUs, but almost all their previous builtin/onboard GPUs: a) Shipped more than NVidia or AMD b) Were performant enough to satisfy 90%+ or PC or laptop owners.
- aeternum 5y ago
  We'll see, 10 years ago people were saying Intel's fabs was so far ahead that no competitor had a chance of catching up.

ChuckNorris89 5y ago

>For example AMD and NVDA revenue up 50%+, income 100%+ Eventually these high margins will attract competitors and bring down the margins For those examples that is false hope. You can't just spring up a new competitor in the GPU filed out of thin air and expect it to work; Nvidia and AMD duopolies are so far ahead into the game experience wise that no startup could ever catch up no matter how much money you throw at it (even AMD is having a hard time keeping up with Nvidia and they've been at it for 30 years). Not to mention the insane patent minefield that protects them from competition. Even Intel, a trilion dollar company with experience, patents and fabs can't catch up with the other two.

ikrenji 5y ago
intel is literally getting into the GPU market 2022
- ChuckNorris89 5y ago
  It is, but performance/value remains to be seen, which brings me back to my point that even the Intel juggernaut faces un uphill battle in this space vs Nvidia and AMD. Granted, during the current shortage, basically any GPU will sell regardless of performance/value proposition which makes it very easy for Intel to enter the market right now, however, 2-3 years ago, when Nvidia and AMD GPUs were affordable and available everywhere, nobody would have ever considered buying Intel discrete GPUs as even their integrated ones were not well received.
- lelanthran 5y ago
  > intel is literally getting into the GPU market 2022 Haven't they always been in the GPU market? Sure, they don't compete on top-end GPUs, but almost all their previous builtin/onboard GPUs: a) Shipped more than NVidia or AMD b) Were performant enough to satisfy 90%+ or PC or laptop owners.
aeternum 5y ago
We'll see, 10 years ago people were saying Intel's fabs was so far ahead that no competitor had a chance of catching up.