Reports from industry insiders indicate AMD is preparing to raise the prices of its Radeon graphics cards following a significant surge in memory costs. The global memory market has tightened considerably in 2025, largely due to increased demand driven by AI infrastructure build-outs. This has pushed DDR5 prices up by as much as 60% this year and overall DRAM costs by roughly 170% compared to 2024.
GDDR6 memory, widely used in graphics cards, has seen its procurement costs rise about 30%, as production capacity shifts toward high-density server and AI applications. These higher component costs mean AMD must increase the prices it charges its add-in board partners for GPU shipments, likely translating to higher retail prices for consumers.
Previous Price Changes and Industry Impact
AMD had already implemented a minor upstream price increase in October, but this adjustment was absorbed and did not significantly affect retail pricing. The upcoming hike is expected to be larger and impact the entire Radeon portfolio, including workstation and AI-focused GPUs.
NVIDIA is reportedly planning a similar price increase in early 2026, facing the same memory supply constraints. Industry observers note that neither company is driving these changes intentionally but must respond to market realities.
Consumer and Market Reaction
Many gamers and PC builders hoped for stable or falling GPU prices as supply normalized, making this news disappointing. Some Radeon RX 9070 XT cards had recently normalized to their official MSRP after months of inflated street prices, but the new hikes threaten to reverse these gains.
The potential price increase affects consumers planning holiday season purchases or early 2026 upgrades, making now a recommended time to buy GPUs before prices climb.
Summary of Expected Changes
- Price hike affects all Radeon gaming GPUs, workstation cards, and AI accelerators.
- Memory cost increases primarily due to AI data center demand.
- No official release date announced for price changes but expected within weeks.
- NVIDIA expected to follow with similar adjustments in Q1 2026.
- Consumers urged to consider purchasing now before prices rise further.
Frequently Asked Questions
Why are AMD raising GPU prices?
Because the procurement costs of memory components, especially DDR5 and GDDR6, have surged due to high demand from AI infrastructure and server markets, raising the overall production cost of GPUs.
When will the price hike take effect?
No official date has been announced, but sources expect the changes to impact the next shipments reaching retail in late 2025 or early 2026.
Will NVIDIA also raise GPU prices?
Yes, NVIDIA is reported to be planning similar price increases in early 2026 due to the same memory cost pressure.
How much will prices increase?
Exact price changes are unclear, but analysts expect increases anywhere from 5% to 15%, depending on GPU model and configuration.
Should consumers buy GPUs now or wait?
Given the expectation of rising prices, experts advise purchasing GPUs before the price hike takes effect to avoid paying more later.
Looking Ahead
AMD’s GPU price hikes underscore the broader challenges the semiconductor industry faces balancing supply and demand amid rapidly evolving AI workloads. While painful for gamers and PC builders, these adjustments may be unavoidable until memory supply can catch up with demand.
Buyers should factor these developments into their upgrade plans and consider acting sooner rather than later to secure current pricing.