Budget AMD and NVIDIA GPUs at Risk as Rising Memory Prices Reshape the Market

The PC market is entering a difficult phase. Korean outlet Hankyung reports that AMD and NVIDIA are weighing cuts — or even a full halt — to production of low-cost GPUs, after GDDR memory prices climbed so high that manufacturing entry-level cards is no longer profitable.

In recent weeks, DDR5 and GDDR prices have surged at unprecedented rates. The AI sector is buying up a large share of global DRAM supply, prompting suppliers to scramble and pay significantly more for new shipments.

According to sources, both companies could shift manufacturing toward the premium tier where margins remain healthy. Models most at risk include NVIDIA’s xx60 and xx50 series and entry-level Radeon cards. With current GDDR6 and GDDR7 costs, producing budget GPUs approaches the expense of making higher-end variants.

Analysts expect higher prices, a narrower selection, and a market tilt toward systems with integrated graphics. The mid-range will increasingly be positioned as “budget” while carrying steeper price tags.

Concerns have been raised for some time: ASUS warned that a DRAM shortage would significantly raise PC prices. If AMD and NVIDIA withdraw affordable options, the graphics card market could face a second major upheaval this decade — following the mining surge and the pandemic.

Source: iXBT.games