AMD is reportedly planning to increase the prices of its graphics cards and memory units, mirroring recent actions by competitor Nvidia. The price adjustments are expected to take effect at the start of August, with increases of at least 10% across all products, according to industry analyst Harukaze5719.
This move by AMD is seen as a strategic response to Nvidia's own reported price increases, aimed at maintaining market competitiveness. Harukaze5719 noted that AMD had been waiting for Nvidia to adjust its pricing first to avoid potential risks associated with declining product competitiveness and market share loss during a period of high demand.
The price positioning for AMD's increased costs is anticipated to align closely with Nvidia's revised pricing structure. Last week, reports indicated that Nvidia would raise prices for its graphics cards and associated components by 20% to 30%, with Samsung also expected to increase memory unit prices by similar margins.
The primary driver behind these widespread price hikes is the intense demand for components from AI datacenters, which are securing significant portions of available stock through lucrative deals. This demand is occurring alongside a noticeable slowdown in the consumer graphics card market, characterized by high price sensitivity among end-users and existing inventory that still needs to be sold.
The ripple effects of these industry-wide price increases are also impacting the console gaming market. All three major console manufacturers—Nintendo, Sony, and Microsoft—have raised the prices of their consoles since their respective launches, with warnings that further increases may be necessary. This trend could lead to next-generation consoles reaching price points nearing £1,000.