Industry analysis indicates AMD and Nvidia are planning phased GPU price increases throughout 2026.
A new report from Newsis suggests that both AMD and Nvidia are planning to raise the prices of consumer GPUs significantly in 2026. This increase is being driven by rising demand for components in AI datacenters. According to industry experts cited in the report, memory costs now account for nearly 80% of a GPU's total manufacturing cost, which helps explain the dramatic increase in prices. The spike in specialized graphics memory components like GDDR7 and GDDR6 VRAM directly connects to the huge increase in demand stemming from the construction of AI data centers around the globe.
The report indicates that AMD GPU price increases will begin this month, with Nvidia price hikes expected in February 2026, and both companies are expected to continue raising prices throughout the rest of the year. One particularly significant detail is the suggestion that consumer costs for high-end GPUs could climb to as high as $5,000 by the end of the year, representing a staggering $3,000 increase in price for models like the Nvidia RTX 5090. In addition, rumors suggest that NVIDIA is cutting down production of the RTX 5060 Ti and RTX 5070 by 30-40% to reallocate the limited VRAM supply to the higher-margin AI chips.
The price increases are not limited to Nvidia and AMD. ASUS has already officially confirmed a price increase for their components starting January 5, 2026, citing rising component costs and supply chain pressure. Whether these increased prices will hold or eventually drop back down depends largely on how long the AI boom continues. Many large tech companies appear committed to embracing generative AI and LLMs, making it highly likely that demand for datacenter components won't be decreasing any time soon. As PC building becomes increasingly expensive, hardcore gamers with strict budgets may turn to alternatives like GeForce NOW as a streaming solution.
Nvidia and AMD have not confirmed the price increases reported at this time.