Nvidia Expected to Increase Graphics Card Prices by 30% Amid Ongoing Memory Shortage

As the AI-driven RAMpocalypse continues to escalate, Nvidia graphics cards are poised to see significant price hikes. A recent report indicates that Nvidia plans to increase the cost of its memory and GPU bundles by 20% to 30%.

Last week, Nvidia reportedly raised the prices of GPU kits for its manufacturing partners, including major players like MSI and Asus, who assemble the consumer graphics cards using Nvidia’s GPUs. The latest information suggests these price increases could reach up to 30%. While manufacturers aren’t obligated to pass these costs onto consumers, history suggests they likely will. Prior to this news, GPU prices had remained relatively stable since the beginning of the year.

In a related development, three companies that dominate 90% of the RAM market are facing legal action for anti-competitive practices.

For those not up to speed on the current hardware landscape, a memory shortage is underway, driven by a surge in data center production. As tech companies scramble to establish data centers that support generative AI, the three leading RAM manufacturers—Samsung, SK Hynix, and Micron—have shifted their focus from primarily producing dynamic random access memory (DRAM) for consumer electronics to high-bandwidth memory (HBM) for data centers.

This shift has led to a DRAM shortage, causing prices for hardware like PCs and gaming consoles to soar. This ongoing memory crisis is often referred to as the RAMpocalypse or RAMageddon. The abrupt pivot by Samsung, SK Hynix, and Micron has been so drastic that they are now being sued for manipulating market conditions to inflate prices by under-producing DRAM.

The gaming hardware market has faced unprecedented price increases due to this RAM shortage. In May, Valve raised the price of the Steam Deck by $240 to $300, depending on the model. Sony increased the prices of both versions of the PlayStation 5, with the base optical drive model seeing a $150 jump from its launch MSRP in 2020. Microsoft recently announced another price hike for the Xbox Series X and S, effective in August, with the disc-drive Series X going from $649.99 to $799.99—$300 more than its launch price. The Nintendo Switch 2 is also set for a $50 price increase starting September 1. It’s a tough time for anyone looking to buy gaming hardware.