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AMD to Hike GPU Prices 10% in 2026 Amid AI Boom
1 Dec
Summary
- AMD plans a 10% price increase for Radeon GPUs in early 2026.
- Soaring demand for AI and high memory costs are driving the hike.
- Nvidia is also facing supply issues but is prioritizing data centers.
Advanced Micro Devices (AMD) is reportedly planning a significant price adjustment for its Radeon Graphics Processing Units (GPUs), with a projected 10% increase anticipated in early 2026. This move comes as the company naviges a monumental 2025, marked by surging demand for computing power, particularly driven by artificial intelligence.
Sources indicate that escalating costs for DRAM and VRAM have impacted AMD's profitability, prompting the need for price hikes to offset these expenses. While the company has previously absorbed these increased costs, this internal defense is expected to conclude by early 2026, leading to higher prices for gamers and PC builders.
Neighboring tech giant Nvidia is also contending with similar supply chain challenges. However, Nvidia is strategically delaying new consumer product launches rather than reducing prices in the tightening memory market. The industry's focus on AI accelerators is creating a "memory bull market," affecting the availability and cost of components essential for consumer GPUs.
