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GPU Manufacturers Adjust Production, Anticipate Price Increases Amidst Memory Supply Constraints

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GPU Manufacturers Adjust Strategy, Anticipate Price Hikes in 2026

GPU manufacturers, including NVIDIA and AMD, are reportedly adjusting their production strategies and anticipating price increases for graphics cards in 2026. These changes are primarily attributed to ongoing high memory chip costs and supply constraints, driven by significant demand from artificial intelligence (AI) data centers.

"High memory chip costs and supply constraints, driven by significant demand from artificial intelligence (AI) data centers," are forcing GPU manufacturers to rebalance production.

Production Strategy Adjustments

NVIDIA is reportedly rebalancing its RTX 50 series graphics card production strategy for 2026. The focus is shifting towards models that require less VRAM, a direct response to increasing memory chip costs impacting overall GPU manufacturing expenses.

Prioritizing Lower-VRAM Models

Production is expected to prioritize the RTX 5060 and RTX 5060 Ti 8GB models. These 8GB variants require fewer GDDR7 memory modules, making them more cost-effective to produce under current market conditions. The RTX 5060 and RTX 5060 Ti 8GB series are positioned as primary sales drivers, particularly within the Chinese market, aiming to ensure a consistent supply to partners.

Scaling Back Higher-VRAM Shipments

Shipments of higher-VRAM models, specifically the RTX 5070 Ti and RTX 5060 Ti 16GB, are reported to have been scaled back or placed into "end of life" status by some add-in board (AIB) partners.

Exploring Older and High-Margin Options

NVIDIA is reportedly exploring options to increase production of older GPUs, such as the RTX 3060 8GB, and potentially re-introduce other older variants with updated technologies like DLSS support to address market demands. Higher-margin models like the RTX 5080 and RTX 5090 are expected to remain available, as their premium pricing may allow manufacturers to absorb component price increases more readily.

Memory Supply Constraints and Market Impact

The adjustments in production and pricing stem from an ongoing memory shortage that has persisted for several months.

AI Demand Drives Shortages

High demand for RAM and other computer components from AI data center infrastructure companies is a primary factor. Memory manufacturers are reportedly shifting production towards high bandwidth memory (HBM), which is crucial for AI applications.

Rising Component Costs

This shift has led to increased prices for various components, including consumer RAM kits, SSDs, and GPUs. Further cost increases for even lower-VRAM models are not ruled out.

Supplier Actions

Micron Technology, a major memory manufacturer, announced in December that it would wind down its consumer-facing Crucial brand to focus on supplying components to the AI industry. A rumor further suggests NVIDIA may require its board partners to source memory independently, rather than providing both the GPU die and memory as historically done.

Reported Discontinuations and Availability Concerns

Reports concerning the availability of specific RTX 50 series models vary, highlighting a fluid market situation.

Hardware Unboxed Report

The Australian YouTube channel Hardware Unboxed reported that ASUS, an AIB partner, indicated the RTX 5070 Ti was experiencing a supply shortage and had been placed into 'end of life' status, with no further production planned. ASUS also reportedly stated it no longer planned to produce the RTX 5060 Ti 16GB.

Australian Retailer Confirmation

Australian retailers have also reported the RTX 5070 Ti was unavailable from partners and distributors, a situation expected to continue through at least Q1 2026.

NVIDIA's Statement

NVIDIA informed media outlets that:

"Demand for GeForce RTX GPUs is strong, and memory supply is constrained. We continue to ship all GeForce SKUs and are working closely with our suppliers to maximize memory availability."

NVIDIA did not confirm or deny the discontinuation reports. ASUS did not provide an immediate response to an Engadget request for comment.

Zotac Korea Warning

Zotac Korea informed customers that memory and GPU availability are expected to decline, with reduced GPU shipments and some graphics card models potentially becoming unavailable for extended periods. Zotac stated that models such as the RTX 5060, RTX 5060 16GB, and RTX 5070 Ti could experience limited availability.

Anticipated GPU Price Increases

Both NVIDIA and AMD graphics cards are experiencing and are anticipated to see further price increases into 2026.

NVIDIA Price Hikes

Existing NVIDIA RTX 50 series models have shown significant price increases, with some higher-end cards selling above their Manufacturer's Suggested Retail Price (MSRP).

  • The RTX 5090 has been observed selling for over $3,500, with some models exceeding $5,000, and its reported baseline price has increased by over 55%.
  • The RTX 5080 has been difficult to find below $1,500.
  • The RTX 5070 Ti, with an MSRP of $749, has been observed selling for $1,249 or $1,499 in some instances, and often over $1,000.
  • The RTX 5060 Ti 16GB is frequently observed selling for over $700.

Board Partner Actions

ASUS and Gigabyte are reportedly planning to increase prices for RX 9000 and RTX 50-series graphics cards by up to 15% by the end of January 2026. MSI has already implemented price increases on its latest-generation GPU models. The extent of the price increase is suggested to depend on VRAM capacity, with 16GB or more VRAM models potentially seeing a 15% increase, and 8GB models a 10% increase.

AMD Price Adjustments

AMD is reportedly planning a second price increase for its Radeon GPUs in Q1 2026, following an initial adjustment in January 2026. The initial increase in January saw most AMD brand manufacturers raise cost prices by approximately 5-10%. This trend is attributed to rising memory costs, and AMD's strategy may involve aligning Radeon GPU prices more closely with those of equivalent NVIDIA models. One report indicated that RX 9070 XT models appeared unaffected, retailing around $750.

General Market Outlook

Price increases for various products, including GPUs, are anticipated to continue through 2026. Zotac Korea also confirmed a reduction of reward points for new GPU purchases to 0%, stating this measure aims to mitigate price increases driven by current market conditions.