Brace Yourselves: GPU Prices Are Climbing Again as AMD Joins Nvidia, AI Takes the Blame

Bad news, folks. Just when we thought graphics card prices were finally stabilizing, it seems like our wallets are about to feel another pinch. Reports are coming in that AMD is preparing to raise the prices of its GPUs and associated VRAM bundles for its manufacturing partners, following a similar move recently made by Nvidia.

Industry insiders suggest that AMD’s price increase will be at least 10%. Interestingly, it appears AMD was holding off on this decision, observing the market and waiting to see what its competitor, Nvidia, would do. With Nvidia reportedly having already implemented price bumps of up to 30% on some of its cards, AMD is now ready to follow suit. Sources indicate that AMD’s price hikes are expected to be uniformly applied across all brands starting as early as next month, potentially aligning their price points closely with Nvidia’s offerings.

So, why the delay from AMD? Apparently, they were considering several factors: a somewhat slow recovery in the consumer graphics card market, gamers’ sensitivity to high prices, and the need for existing inventory to be cleared. But with Nvidia making the first move, it seems the floodgates are now open.

Now, you might be thinking, “A price increase for partners doesn’t necessarily mean higher prices for us, right?” While technically true, the reality for AIB (add-in board) partners – the companies that actually make the custom graphics cards we buy – is that their profit margins are already quite slim. It’s highly unlikely they’ll absorb these increased costs themselves. This means we, the consumers, are almost certainly going to see higher retail prices. Furthermore, this situation might make partners hesitant to sell off their current stock at existing prices, anticipating they’ll fetch more once the new pricing structure is in place.

But what’s really driving this unwelcome trend? The culprit, it seems, is the booming world of Artificial Intelligence. The insatiable demand for AI training, which requires vast amounts of high-bandwidth memory and powerful GPUs, is siphoning off critical components from the consumer market. This intense demand is creating a scarcity, not just for GPUs but also for components like high-speed VRAM and even SSDs.

And the most worrying part? This “memory crisis” isn’t expected to end anytime soon. Major memory manufacturers are reportedly forecasting that supply constraints will become even more severe next year, with the shortage likely to persist through 2028, and possibly even beyond. This paints a grim picture for anyone planning a new PC build or a graphics card upgrade in the near future.

In short, it’s a challenging time to be a PC gamer looking for new hardware, and unfortunately, it seems these challenges are only set to intensify. We’ll keep a close eye on the situation and bring you any updates.