NVIDIA Implements Significant Price Hikes Across GPU Lineup Amid Manufacturing Challenges and Export Restrictions

Curated by THEOUTPOST

On Mon, 12 May, 4:03 PM UTC

5 Sources

Share

NVIDIA has reportedly raised prices for its GPUs and AI chips by 5-15% due to increased manufacturing costs, tariffs, and export restrictions. The move aims to maintain profitability amid multiple challenges.

NVIDIA Faces Multiple Challenges Leading to Price Hikes

NVIDIA, the leading GPU manufacturer, is reportedly implementing significant price increases across its product lineup, including both gaming and AI GPUs. This move comes as the company grapples with multiple challenges, including rising manufacturing costs, tariffs, and export restrictions 12.

Price Increase Details

According to reports, NVIDIA has raised official prices for almost all of its products:

  • Gaming GPUs: 5-10% increase
  • AI GPUs: Up to 15% increase

For example, the high-end RTX 5090 GPU saw its price surge from around NT$90,000 (approximately $2,955) to NT$100,000 ($3,283) overnight in Taiwan 23.

Factors Contributing to the Price Hike

Several factors have contributed to NVIDIA's decision to raise prices:

  1. Export Restrictions: A $5.5 billion hit to quarterly earnings due to US restrictions on selling AI chips like the H20 to China 14.
  2. Manufacturing Costs: The shift of Blackwell chip production to TSMC's US plant has led to significant increases in production, materials, and logistics costs 35.
  3. Tariffs: CEO Jensen Huang has been reportedly shuttling between the US and China to minimize the impact of tariffs 1.

Impact on Different GPU Lines

  1. RTX 50 Series: The entire lineup, including the RTX 5090, 5080, 5070, and 5060 Ti, is expected to see price increases of 5-10% 2.
  2. AI GPUs: The H200 and B200 chips have seen price hikes of up to 15%, with server vendors adjusting their prices accordingly 13.

Market Reactions and Expectations

Despite the challenges, NVIDIA's financial report at the end of the month is expected to be within forecasts and deliver strong profit results. This optimism is driven by:

  1. High demand for AI chips outside of China
  2. Expanding spending from cloud service providers 14

However, the price increases may make the RTX 50 series lineup less attractive to consumers, potentially impacting NVIDIA's market position in the gaming sector 5.

Industry-wide Implications

The price hikes reflect broader issues in the semiconductor industry:

  1. Geopolitical tensions affecting supply chains
  2. The cost of relocating production to the US
  3. The ongoing AI boom driving demand for high-performance chips 35

As NVIDIA passes these increased costs to customers, it remains to be seen how this will affect the competitive landscape in both the gaming and AI chip markets.

Potential for Future Changes

There is some hope that these measures could be temporary. A recent trade deal between the US and China, which includes a 90-day pause on reciprocal tariffs, might lead to reduced costs in the future. However, it may take some time before consumers see any price reductions 1.

As the situation continues to evolve, industry observers will be closely watching NVIDIA's financial reports and market performance to gauge the long-term impact of these price increases on the company's strategy and market position.

Continue Reading
NVIDIA Reports Strong Gaming Revenue Amid GPU Shortage and

NVIDIA Reports Strong Gaming Revenue Amid GPU Shortage and Hints at Next-Gen RTX 50 Series

NVIDIA announces impressive Q3 gaming revenue but warns of supply constraints in Q4. The company hints at the upcoming RTX 50 Series GPUs while shifting focus from the current 40 Series.

pcgamer logoTweakTown logo

2 Sources

pcgamer logoTweakTown logo

2 Sources

NVIDIA's RTX 5090 GPUs Fetch Up to $10,000 on Black Markets

NVIDIA's RTX 5090 GPUs Fetch Up to $10,000 on Black Markets as AI Demand Surges in China

NVIDIA's GeForce RTX 5090 GPUs are being sold for exorbitant prices on Chinese black markets and eBay due to their effectiveness in running DeepSeek AI models, creating a demand reminiscent of the crypto-mining era.

Wccftech logoTechSpot logoTweakTown logo

3 Sources

Wccftech logoTechSpot logoTweakTown logo

3 Sources

AI Server Boom: Vietnamese Retailer Builds Powerful Rigs

AI Server Boom: Vietnamese Retailer Builds Powerful Rigs with Multiple RTX 5090 GPUs

A Vietnamese retailer is constructing high-powered AI servers using multiple NVIDIA GeForce RTX 5090 GPUs, sparking concerns about potential GPU shortages and price hikes reminiscent of the crypto mining era.

Tom's Hardware logoTechRadar logoTweakTown logoWccftech logo

4 Sources

Tom's Hardware logoTechRadar logoTweakTown logoWccftech logo

4 Sources

U.S. Government Imposes Export Restrictions on Nvidia's H20

U.S. Government Imposes Export Restrictions on Nvidia's H20 AI Chips to China

Nvidia faces unexpected export controls on its H20 AI chips to China, resulting in a $5.5 billion charge. The move comes despite earlier reports of a potential deal with the Trump administration.

TechCrunch logoTom's Hardware logotheregister.com logoReuters logo

42 Sources

TechCrunch logoTom's Hardware logotheregister.com logoReuters logo

42 Sources

Nvidia Unveils RTX 5060 Series: Affordable GPUs with DLSS 4

Nvidia Unveils RTX 5060 Series: Affordable GPUs with DLSS 4 Magic, but Tariff Concerns Loom

Nvidia launches the RTX 5060 and 5060 Ti GPUs, promising enhanced performance with DLSS 4 technology. However, potential tariff impacts and VRAM limitations raise concerns.

Gizmodo logoengadget logoThe How-To Geek logoPCWorld logo

23 Sources

Gizmodo logoengadget logoThe How-To Geek logoPCWorld logo

23 Sources

TheOutpost.ai

Your one-stop AI hub

The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.

© 2025 TheOutpost.AI All rights reserved