NVIDIA Warranty Claims Surge by 1000% Since Introduction of 16-Pin Connector GPUs

The dramatic increase in NVIDIA’s warranty claims, soaring by an astonishing 1000%, can be largely attributed to issues associated with its new 16-Pin connector graphics processing units (GPUs).

NVIDIA’s 16-Pin Connector GPUs Cause a Significant Spike in Warranty Claims

In recent years, NVIDIA has reported a worrying escalation in warranty-related costs. According to Warranty Week, a staggering ninefold increase in warranty claims has been observed for NVIDIA, in stark contrast to a two-thirds rise in claims for AMD during the period of 2024 to 2025.

Recent figures in our newsletter “Top 100 Warranty Providers of 2025″reveal that NVIDIA has experienced both a sharp increase in warranty expenses and warranty claims over the past year. From 2024 to 2025, there was a doubling in both metrics, alongside a significant rise in the end-balance of its warranty reserve fund.

AMD has similarly reported heightened warranty claims and reserve balances, reflecting a two-thirds increase in their metrics.

via Warranty Week

NVIDIA’s warranty expenses hovered around $100 million between 2022 and 2024, settling at $81 million in 2024. However, 2025 saw an astonishing leap to $894 million, illustrating the 1000% escalation in costs.

A bar chart shows Nvidia's costs dramatically increasing in 2025 surpassing AMD, according to 'Source: Warranty Week'. — Discrete GPU Warranty Expenses.(Image Source: Warranty Week)

Breaking down NVIDIA’s 2025 warranty expenses, the quarterly patterns indicate a troubling trend: $147 million in Q1, $80 million in Q2, $156 million in Q3, culminating in an alarming $511 million in Q4. NVIDIA typically offers a baseline warranty of 1-3 years, extendable through AIC partners, yet the sharp rise in costs during Q4 is particularly concerning.

In Q4 2025, many contributing factors, including high tariffs and skyrocketing DRAM prices—having quadrupled since 2022—came into play. The intensified competition in the AI sector has exacerbated DRAM shortages. Consequently, NVIDIA and its partners are likely shouldering increased procurement costs for repairs of GPUs submitted for warranty claims. Additionally, the rising production costs of graphics cards are further inflating warranty settlement expenses.

A line chart from 'Warranty Week' shows Nvidia's warranty claims fluctuating more than AMD's, peaking at 1.5% around 2023. — Discrete GPU Warranty Rates.(Image Source: Warranty Week)

Another underlying issue affecting NVIDIA’s warranty claims is the persistent problems associated with their 16-pin connectors. Reports of connector damage first emerged with the launch of the RTX 4090 back in 2022, heralding an uptick in warranty claims that has continued into 2025 with the RTX 50 series, specifically the RTX 5090 and RTX 5080 models.

Despite facing these challenges, AMD has also seen a two-thirds rise in warranty claims costs, from $110 million in 2024 to $238 million in 2025. While AMD’s claim rate increased from 0.43% in 2024 to 0.69% in 2025, NVIDIA’s Q4 2025 rate spiked to 0.90% from just 0.17% earlier that year.

A bar chart compares warranties in US $ millions between Nvidia and AMD from 2003 to 2025, showing Nvidia's warranty costs surging significantly in 2025. — Discrete GPU Accruals Made Per Year by NVIDIA & AMD.(Image Source: Warranty Week)

In 2023, AMD earmarked $126 million for warranty accruals, which increased by two-thirds to $213 million in 2024. The pattern continued into 2025 when they allocated a total of $358 million in accruals.

Simultaneously, NVIDIA’s accruals started at $109 million in 2023 and skyrocketed to $948 million in 2024. In 2025, the figure nearly tripled, reaching $2.59 billion.

Quarterly breakdowns show NVIDIA allocated $428 million in Q1 2025, $870 million in Q2, $220 million in Q3, and an alarming $1.07 billion in Q4.

via Warranty Week

Various factors have contributed to the steep rise in warranty claims for both NVIDIA and AMD. As the prices of critical components continue to rise, we can anticipate that warranty expenses for both GPU manufacturers and their AIC partners will keep escalating.

For further details, visit: Warranty Week

Source & Images