Nvidia and AMD Graphics Cards May See Price Hikes in China Due to Supply Chain Issues
Nvidia and AMD's graphics cards may see price hikes in China due to ongoing supply chain issues. The Taiwanese outlet United Daily News reported that Asus will increase the price of its RTX 5070 cards by between 150 and 300 RMB (approximately $22 to $45) in mainland China.
Gigabyte has already raised the price of its RTX 5060 Ti 16GB GPU by 200 RMB ($30). Meanwhile, AMD has increased prices for various cards, including the RX 9070 XT (up 200 RMB), the RX 9060 XT (8G and 16G versions up to 250 RMB), and the RX 7650 GRE (up 400 RMB or about $60).
The memory supply crisis is partly to blame for these price increases. Nvidia has been reducing its gaming GPU production, recently trimming its shipping forecast by between 15% and 20%. However, it's possible that this reduction in production is not a decrease in overall output but rather a shift towards manufacturing more AI GPUs.
Nvidia's data centre segment generated $89 billion last quarter alone, and the company has announced plans to acquire AI development platform Hugging Face for an eye-watering $13 billion. This suggests that Nvidia may be prioritizing its data centre business over consumer GeForce graphics cards.