NVIDIA Implements Significant Price Increase on AI and Gaming GPUs to Boost Profitability and Offset Losses from China

The ongoing tariff wars are starting to significantly impact NVIDIA’s supply chain, prompting the company to raise prices on all its graphics processing units (GPUs).This price adjustment reflects broader economic tensions and the changing landscape of global trade.

NVIDIA’s RTX 5090 GPU Priced Above $2, 500: Official 10%-15% Price Increase

Due to escalating geopolitical tensions and the unpredictable trade environment, companies like NVIDIA are adopting critical strategies to mitigate revenue losses triggered by steep tariffs. These strategies include shifting portions of their supply chain operations from foreign countries to the United States. Amidst these changes, NVIDIA has officially announced price increases across its entire GPU range, as indicated by a report by DigiTimes. This adjustment has adversely affected consumer-grade GPUs, including the GeForce RTX 5090, alongside AI chips like the B200 accelerator. Ultimately, NVIDIA appears determined to maintain its profit margins.

From the outset, the launch of NVIDIA’s RTX 50 series has faced numerous challenges, including poor inventory management that resulted in inflated pricing across the marketplace. Consumers have found it increasingly difficult to locate these GPUs at their manufacturer’s suggested retail prices (MSRP).Recently, the RTX 5090 has surged well above its previous pricing, with retailers across various platforms reflecting higher costs than just weeks prior. In Taiwan, for instance, the flagship NVIDIA RTX Blackwell GPU has witnessed an approximate 10%-15% price hike, confirming the new pricing structure.

The pricing changes are not isolated to the RTX 5090; other models in the RTX 50 lineup have also seen price increases, though to a lesser extent. This moderation in price hike can be attributed to a lack of remaining pricing flexibility within these models. A key factor in these shifts is NVIDIA’s decision to relocate foundry orders to TSMC’s facility in Arizona. This transition carries higher operating costs due to production in the United States, which inevitably impacts consumer prices. As a result, the RTX 50 series may appear less appealing, potentially hampering their sales and profitability.

On the artificial intelligence front, accelerators like the H200 and B200 have similarly seen price increases of 10%-15%.Server manufacturers are adapting to these adjustments by revising their pricing strategies, indicating a readiness within the supply chain to accommodate these changes. With NVIDIA’s revenue already under pressure due to the H20 export restrictions, the company’s recent pricing strategy suggests it is unwilling to sacrifice further profitability, thereby shifting the cost burden onto consumers.

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