NextFin News - On January 2, 2026, authoritative reports from industry insiders and Korean outlet Newsis confirmed that major GPU manufacturers AMD and NVIDIA plan significant, gradual permanent price hikes for graphics processing units starting in early 2026. AMD is expected to initiate price increases in January, closely followed by NVIDIA in February. This move comes amid intensifying costs associated with advanced components like DDR5 memory and AI-capable GPUs, particularly impacting the high-end GPU segment.
The flagship NVIDIA RTX 5090, which launched with a manufacturer suggested retail price (MSRP) of $1,999 in January 2025, has seen retail prices already climbing sharply, with some models retailing between $3,500 and $4,000 as of early January 2026. Industry leaks predict the RTX 5090 could nearly triple to $5,000 by year-end 2026 under current market dynamics. AMD’s forthcoming RX 9000 series is also expected to face similar upward pressure, although official pricing forecasts remain unpublished.
The key driver behind these steep price increases lies in raw material costs, primarily memory components like GDDR7 and DDR5, which now constitute approximately 80% of the average bill of materials (BOM) for GPUs. Memory prices alone are forecasted to increase by as much as 40% by the second quarter of 2026, a surge attributed to constrained supply chains exacerbated by heightened AI workloads demanding substantial GPU and memory capacity. SK Hynix and Micron's recent market moves further tighten the memory supply, compounding production cost challenges.
In parallel, ASUS announced price increases for motherboards and related hardware effective January 2026, opting to escalate prices despite expanding production runs of DDR4 motherboards. This reflects a broader industry response attempting to balance rising input costs and volatile consumer purchasing power amid inflationary pressures worldwide.
The implications for the gaming hardware ecosystem are profound. Aside from immediate cost increases for gamers and enthusiasts, higher GPU price points could delay or alter product launch schedules and dampen demand for next-gen gaming consoles and PC hardware upgrades. The affordability crisis could shrink the consumer base, potentially shifting segments toward mid-range GPUs or previously released models such as the RTX 4070 Ti or RTX 4090, which may offer better value propositions at current prices.
From a macroeconomic and industry perspective, this price correction reflects fundamental supply-demand friction exacerbated by structural changes in GPU utilization. The rise of AI computing workloads outside traditional gaming sectors, including data centers and enterprise AI, diverts substantial GPU inventory to proxy AI applications. Consequently, NVIDIA and AMD are adjusting pricing strategies not only to recoup rising costs but to capitalize on these new, high-margin market segments.
Moving forward, the GPU market is likely to experience sustained pricing volatility at least through 2026, if not beyond, given the memory supply forecasts extending tightness to 2028. Consumer adaptation may involve increased uptake of alternative architectures, cloud gaming services, or even delays in hardware replacement cycles. Industry players will need to innovate both on supply chain optimization and product segmentation to maintain competitive advantage in this evolving landscape.
In conclusion, the confirmed GPU price increases by AMD and NVIDIA signify a pivotal shift in the global semiconductor market catalyzed by AI-driven demand and memory scarcity. Stakeholders from gamers to OEMs must prepare for an extended period of elevated costs and supply challenges, potentially reshaping the dynamics of PC gaming and AI hardware deployment under U.S. President Trump’s administration, which may further influence semiconductor policies and trade considerations affecting global supply chains.
