DLSS5 Drives Up Graphics Memory Prices Amid Tight Supply Chain
Nvidia's latest neural rendering technology, DLSS5, is driving up demand for high-capacity graphics memory, putting pressure on an already tight GDDR supply chain. The technology requires roughly 731MB of additional GPU memory at 4K resolution on the RTX 5090, pushing consumers toward cards with 16GB or more VRAM. As a result, graphics card makers including Asus, Galaxy, and Gigabyte have raised prices on select products in the Chinese market.
The root cause lies in how memory manufacturers allocate their limited wafer capacity. HBM produces less capacity per wafer than standard DRAM but is far more profitable due to premium pricing. As a result, major memory suppliers such as Samsung Electronics, SK hynix, and Micron Technology are devoting a significant share of their wafer input to HBM first, leaving general-purpose products like graphics DRAM with lower priority.
The three dominant memory suppliers have already begun mass production and shipments of HBM4, the latest generation designed for Nvidia's next-generation Rubin platform. Analyst Ignacio Planas Gonzalez expects this cycle to continue, with supply unlikely to catch up meaningfully before 2028 due to high-bandwidth flash (HBF) becoming a potentially significant new market.