AMD and NVIDIA Set to Raise GPU Prices Amid Supply Chain Pressures

Price increases for graphics processing units (GPUs) from major manufacturers AMD and NVIDIA are imminent as both companies have informed their partners about rising supply chain costs. This shift is expected to impact various brands, although the extent of price changes may vary across the market. The adjustments are part of a broader trend linked to supply chain challenges that have persisted in the technology sector.

Reports indicate that the price hikes will affect GPU memory bundles specifically, although precise figures have not yet been disclosed. Industry speculation suggests that consumers could see price increases of up to 15% on certain models. Both Notebookcheck and CTEE have noted that ASUS and GIGABYTE are preparing to raise the manufacturer’s suggested retail price (MSRP) for their RTX 50-series and RDNA 4 GPUs shortly.

Significant challenges in the supply chain, particularly a shortage of dynamic random-access memory (DRAM), are fueling these price adjustments. This shortage has already led to limited availability of certain NVIDIA graphics cards, with the RTX 5090 experiencing notable price increases in the third-party market. As stock from official retailers remains scarce, consumers have increasingly turned to third-party sellers, driving prices higher.

Impact of Supply Chain Issues on GPU Pricing

The anticipated price increases are not the first in the GPU market. With rising demand and constrained supply, the sector has faced multiple rounds of price adjustments in recent years. The current situation is expected to escalate, with many consumers likely to see a shift in GPU pricing by the end of January 2024.

While some brands may initially hold off on increasing prices, the prevailing conditions suggest that it is only a matter of time before these adjustments become widespread. As retailers exhaust their existing stock at current prices, third-party sellers may raise prices even further, complicating the purchasing landscape for consumers.

Market Response and Future Expectations

As the market braces for these changes, consumers are advised to remain vigilant. The price increases are official adjustments by manufacturers, contrasting with the inflated prices seen in the secondary market. While some may hope to find GPUs at current MSRP levels, the likelihood diminishes as stock becomes limited.

In summary, the anticipated price hikes from AMD and NVIDIA signal a challenging period ahead for consumers seeking new graphics cards. With MSI already reported to have raised prices on its products, it is clear that the ramifications of supply chain issues are set to ripple through the market in 2024.