Rising Costs: AMD and NVIDIA Graphics Cards See Price Hike of $85 Over the Year

Upcoming Graphics Card Price Increases: What to Expect

Summary:

  • Graphics card prices are projected to rise starting in 2025 due to increased procurement costs.
  • The surge in prices is primarily driven by rising costs of upstream graphics memory.
  • Price hikes will be incremental and are expected to begin late 2025 to early 2026.

The graphics card market is on the brink of significant price adjustments, as reported by recent industry insights. According to Boban Tang, prices are expected to enter an upward trend by 2025, impacting both consumers and manufacturers alike.

Rising Costs Leading to Price Increases

The primary catalyst for the anticipated price increase is the substantial rise in procurement costs associated with NVIDIA and AMD’s partner manufacturers, commonly referred to as AIC (Add-In Card) and AIB (Add-In Board) partners. The surge in material costs, especially for graphics memory components, has made it imperative for manufacturers to adjust their pricing strategies accordingly.

NVIDIA and AMD employ a bundling model that integrates GPUs with video memory, meaning any increase in the cost of video memory directly translates to heightened expenses for their associated manufacturers. This dynamic creates a ripple effect, ultimately leading to elevated procurement costs.

Incremental Price Hikes on the Horizon

While the specifics of these price increases will be defined by NVIDIA and AMD—particularly through their new GPU + video memory pricing strategy—industry experts anticipate that these adjustments will not occur all at once. Instead, the companies are likely to implement the price increases in several phases to maintain market acceptance and reduce consumer backlash.

The first wave of price increases is expected to see an uptick of approximately $20 for the 8GB video memory versions and $40 for the 16GB versions. Given these increments, consumers should prepare for substantial increases over the coming year.

Projected Price Trends for 2026

Looking further ahead, experts forecast that the overall price increases for graphics cards will be significant. By the end of 2026, a 16GB graphics card could see a total price increase approaching 600 yuan, while the 8GB version may increase by about 300 yuan. As manufacturers brace for these transitions, they have already begun notifying distribution channels to prepare for stockpiling ahead of the price changes.

Additionally, it’s worth noting that the market will not witness new product launches throughout 2027. This absence of new offerings will further compound the demand for existing models, possibly intensifying competition among consumers to secure available inventory before the price increases take hold.

Conclusion

As the graphics card market gears up for a new era of pricing, both manufacturers and consumers must brace themselves for the impending changes. The interplay between rising material costs and strategic pricing models employed by NVIDIA and AMD indicates that 2025 will usher in a transformative period for the industry.

Consumers looking to upgrade or purchase graphics cards would be wise to consider their options carefully in light of these forecasts. With the combination of planned incremental price hikes and a halt in new product releases, the window for affordable purchases may soon close.

By understanding these trends and the forces at play, stakeholders in the graphics card market can better navigate the forthcoming shifts in pricing.

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