Nvidia reportedly raises GPU prices by 10-15% as manufacturing costs surge — tariffs and TSMC price hikes filter down to retailers

Nvidia reportedly raises GPU prices by 10-15% as manufacturing costs surge — tariffs and TSMC price hikes filter down to retailers
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Oh won't someone please think of poor Nvidia?!

Translation:

We know the newest low end cards are a terrible upgrade(it's probably downgrade for many), so they wont sell and we want to make up the loss on our artificially bloated prices by increasing them even more.

I really wish Intel would move faster, so they and AMD can start competing for proper consumer GPUs. Because nvidia has clearly made up their mind that the AI market is the way forwards and it almost seems like they're trying to kill off their video game department by increasing prices and decreasing quality each generation.

Unfortunately, it's quite difficult for AMD and Intel to make any big difference in the short term.

On the Intel GPU side, bluntly, they are far behind in tech, so they have to mitigate that with more aggressive pricing.

Don't believe me? Look at the process node they use and the die size of their chips, now look at the performance and power efficiency they get compared to similar node/die size Radeon or Geforce cards. That means Intel has to spend a lot more on manufacturing but can't charge anywhere near as much. In other words, they have to use more raw materials to make the same performance.

Intel doesn't make money from their GPUs yet. They literally don't want to sell too many cards because they generally lose money on each one sold. That's why their launch was a paper launch. They're spending right now to build expertise and expertise before doing a bigger push later.

On the AMD side, there's some good news in that their latest generation is pretty great and has massively outsold their previous generations.

The bad news is that even if AMD has doubled sales or whatever, they were already such a small part of the overall pie that Nvidia (85%+ of the market) shitting the bed isn't something AMD can suddenly fix.

It'd be like if all carmakers except Mazda shat the bed, Mazda can't suddenly expand and fix the market. They could increase it a bit, probably, but filling the orders that the VW or Toyota group usually do? Impossible.

Also, whenever there's excess demand for CPUs, AMD would prefer to service that market. It's far higher margin.

Initially, stores tried to manage demand by blocking tax-free purchases, hoping to discourage tourists, mainly from China, from buying cards.

For many, it still makes financial sense to fly to Japan, pick up a 5090, and either resell it or use it for.

Chinese board partners have long been suspected of selling GPUs directly to cryptocurrency miners, bypassing the consumer market entirely. Now, with the AI boom, these companies are shifting even more stock to AI server manufacturers, who are willing to pay a premium. That leaves even fewer GPUs available for regular gamers, making GPU-buying tourism a surprisingly viable option.

It does kind of illustrate how hard it is to restrict the flow of goods.

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Snagged the 4070 super last fall. I knew the orange tariffest would make parts more expensive. There is still time, they should be selling stock here currently at reg prices.

I built my new rig last fall as well... writing was 100% on the wall. A lot of improvements around here got bumped due to tarrifs... so far, every one was the correct play.

I feel like this was supposed to be the overall operating cost is what triggered the 15% raise cuz why the fuck would the manufacturing costs all of a sudden go up? I could see material costs raising, logistical costs raising. Both from tariffs, but unless the legislature for where these are manufactured raised their minimum wage by 15% and Nvidia was paying everyone at the company 15% then where the fuck did the 15% cost increase to manufacture an already produced product come from?

And this is before retailers add their 20% "fuck you, try and find this somewhere else" markup on top MSRP.

Guess I hope AI bros can keep nvidia going, gamers are straight up priced out of this market.

When the AI market crashes its going to be brutal.

Sometimes it seems to me that just maybe it could be possible that the same two or three companies controlling the entire supply of a crucial component for decades at a time is not really enough to enable the magic hand of capitalism to provide a healthy competitive market.

Well once upon a time there was this thing called the CHIPS Act ... and while that wouldn't have changed up corporate ownership, it would have at least got some domestic US chip fab going...

But uh Trump shit all over that, took credit for inventing it after he basically cancelled it, and then started a trade war.

Art of the Deal, you see.

In case of Nvidia and AMD, the same family even.

Yeah, because they were too cheap before. Unsustainable really.

I would willingly sell my house and all it's contents for the glorious bullshitted pixels per second count that nVidia GPUs provide.

Nvidia? More like Novideo, amirite?

Every time I think I want to upgrade my 2080ti, I see another article like this saying how nVidia is just gonna keep making things more expensive.

AMD is laughing. They were already overpriced and bad value for the money.

AMD is making a lot more off their CPUs than off their GPUs afaik.

No. Nvidia is raising prices cause fuck you.