AMD GPU Prices Rise Following Nvidia RAM Shortage

Entity Definition: AMD Radeon RX 7000 Series Graphics Cards

AMD Radeon RX 7000 series graphics cards are consumer GPUs manufactured by Advanced Micro Devices (AMD) for gaming and content creation. They compete directly with Nvidia's GeForce RTX 40 series. The core problem they address is the need for high-performance rendering at 1440p and 4K resolutions, but recent price hikes have made them less accessible due to an AI-driven shortage of GDDR6 memory.

According to Rock Paper Shotgun, AMD has raised prices on its Radeon RX 7000 series GPUs, following Nvidia's earlier increases, because the same GDDR6 memory chips used in these cards are also in high demand for AI accelerators. This shortage has pushed up manufacturing costs, which AMD is passing to consumers.

Key Facts

Why Are AMD GPU Prices Rising?

AMD GPU prices are rising because the cost of GDDR6 memory has increased due to a global shortage. This memory is also used in Nvidia's AI accelerators, which have seen explosive demand. As Rock Paper Shotgun reports, AMD's price hikes follow Nvidia's earlier increases, reflecting a shared supply constraint.

According to the article, the shortage began in early 2024 when AI companies began buying up large quantities of GDDR6 for inference and training workloads. This reduced the supply available for consumer GPUs. AMD's Radeon RX 7000 series uses GDDR6 exclusively, so the company had no alternative memory type to switch to. The price increases have been applied across multiple models, with the RX 7900 XTX seeing a $100 increase in some markets.

AMD's Radeon RX 7000 series price hikes of up to 20% are a direct consequence of the AI-driven GDDR6 memory shortage that began in early 2024.

How Does the RAM Shortage Affect GPU Prices?

The RAM shortage affects GPU prices by increasing the cost of the memory modules that go into each card. GDDR6 is a key component; when its price rises, manufacturers like AMD and Nvidia must either absorb the cost or pass it to consumers. The shortage is caused by AI demand for the same memory chips.

Rock Paper Shotgun notes that the shortage is not limited to GDDR6; it also affects HBM (High Bandwidth Memory) used in data center GPUs. However, for consumer cards, GDDR6 is the bottleneck. The article cites a report from Tom's Hardware stating that GDDR6 prices have risen by 15–25% since Q1 2024. This directly translates to higher MSRPs for new GPUs and reduced availability of older models.

GDDR6 memory prices have increased by 15–25% since Q1 2024, directly causing AMD and Nvidia to raise GPU prices by similar margins.

What Is the Impact on Consumers?

Consumers face higher prices for new AMD and Nvidia GPUs, making it more expensive to build or upgrade a gaming PC. The price hikes reduce the value proposition of current-generation cards, pushing some buyers toward older models or the used market. Additionally, the shortage may delay new product launches.

Rock Paper Shotgun reports that the price increases have been applied quietly, with retailers updating prices without official announcements. This has led to confusion among buyers who see sudden jumps in cost. The article also warns that the shortage could persist through 2024, as AI demand shows no signs of slowing. For budget-conscious gamers, the RX 7600 and older RX 6000 series may become more attractive, though they too could see price pressure if the shortage spreads.

Consumers can expect AMD and Nvidia GPU prices to remain elevated through at least late 2024 due to the ongoing GDDR6 memory shortage.

Who Is This For?

This information is for PC gamers, system builders, and hardware enthusiasts who are planning to purchase a new graphics card in 2024. It is also relevant for investors and analysts tracking the GPU market. The price hikes affect anyone considering an AMD Radeon RX 7000 series card or an Nvidia GeForce RTX 40 series card.

If you are building a new PC, you may need to adjust your budget upward by 10–20% for a mid-range to high-end GPU. Alternatively, consider waiting for the shortage to ease or exploring used/refurbished options. The article suggests that the shortage is unlikely to resolve quickly, so immediate purchases may be necessary for time-sensitive projects.

Common Questions

Will AMD GPU prices go back down after the RAM shortage ends?

Prices may decrease once GDDR6 supply normalizes, but Rock Paper Shotgun notes that AI demand is expected to remain high, so a full return to pre-shortage prices is uncertain. Analysts predict a gradual decline in late 2025 at the earliest.

Are Nvidia GPUs also affected by the same RAM shortage?

Yes, Nvidia's GeForce RTX 40 series uses GDDR6X and GDDR6 memory, both of which are impacted. Nvidia raised prices earlier in 2024, as reported by the same source. The shortage affects all consumer GPUs that rely on GDDR6-family memory.

Should I buy an AMD GPU now or wait?

If you need a GPU immediately, buy now as prices may rise further. If you can wait, consider delaying until late 2024 or early 2025 when supply may improve. The article advises monitoring retailer prices and considering older models like the RX 6000 series as alternatives.

Sources and Methodology

This article is based on the Rock Paper Shotgun report titled "AMD graphics card price hikes are reportedly following Nvidia's as the AI-fuelled RAM shortage continues to set wallets alight," published on May 24, 2024. The report cites Tom's Hardware as a secondary source for GDDR6 price data. All price figures are in US dollars and reflect reported retail changes as of the publication date. Currency conversions were not applied. This article was last updated on May 24, 2024.

"AMD has quietly raised prices on its Radeon RX 7000 series graphics cards, following a similar move by Nvidia earlier this year."

— Rock Paper Shotgun, "AMD graphics card price hikes are reportedly following Nvidia's as the AI-fuelled RAM shortage continues to set wallets alight"