The graphics card market is experiencing another wave of price increases as Nvidia reportedly adjusts pricing across its product lineup. According to recent reports, the tech giant has implemented significant price hikes affecting both its consumer gaming GPUs and professional AI accelerators, with increases ranging from 5% to 15% depending on the product category.
Rising Costs and Supply Chain Shifts
Nvidia's decision to raise prices comes amid growing geopolitical tensions and trade uncertainties that have disrupted its supply chain operations. The company has been working to relocate portions of its manufacturing from Taiwan to TSMC's facilities in Arizona, a move that has substantially increased production costs. This transition to US-based manufacturing brings higher operational expenses, material costs, and logistical challenges that are now being passed on to consumers and enterprise customers.
RTX 5090 Pricing Reaches New Heights
The flagship RTX 5090 graphics card has been particularly affected, with reports indicating price increases of 10-15% across multiple retailers. What was already a premium product with limited availability at MSRP has become even more expensive, with prices in Taiwan reportedly jumping overnight from approximately NT$90,000 to NT$100,000 (roughly USD $2,500+). This makes the high-end GPU an increasingly difficult purchase to justify for even enthusiast gamers and content creators.
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| The GeForce RTX 5070 showcases Nvidia's premium graphics technology, which is also seeing significant price hikes, particularly in high-end models like the RTX 5090 |
Broader Impact Across Product Lines
The price adjustments aren't limited to just the top-tier consumer cards. Other models in the RTX 50 series lineup have also seen increases, though reportedly at a slightly lower rate of 5-10%. According to industry sources, these more modest increases reflect the limited margin available for price adjustments in the mid-range and entry-level segments, where competition is fiercer and consumers are more price-sensitive.
AI Accelerators Also Affected
On the professional side, Nvidia's data center and AI products haven't escaped the pricing strategy shift. The report indicates that accelerators like the H200 and B200 have experienced similar 10-15% price increases. Server manufacturers have already begun revising their pricing quotes accordingly, suggesting that the supply chain is prepared to absorb and pass along these higher costs to enterprise customers.
Financial Pressures Driving Decisions
These price hikes appear to be a direct response to multiple financial pressures facing Nvidia. The company has reportedly taken a USD $5.5 billion hit to quarterly earnings due to export restrictions on AI chips to China, including a ban on sales of its H20 chips in that market. CEO Jensen Huang has reportedly been actively working to minimize the impact of tariffs by traveling between the US and China, but the company seems unwilling to compromise on profitability margins.
Market Response and Future Outlook
Despite the price increases, demand for Nvidia's products remains strong, particularly in the AI sector outside of China. Cloud service providers continue to expand their spending on AI infrastructure, which may help offset some of the company's losses in the Chinese market. However, the higher pricing makes the RTX 50 series a less attractive option for many consumers, potentially impacting Nvidia's gaming division performance.
There is some hope that these measures might be temporary. Recent developments in US-China trade relations, including a reported agreement to cut tariffs by 115% and a 90-day pause on reciprocal tariffs, could eventually lead to more favorable conditions. However, as with most cost increases in the supply chain, any potential price reductions may take considerable time to reach end consumers.