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NVIDIA GPU Prices Surge: Tariffs and Manufacturing Costs Push RTX 5090 Above $2,500

NVIDIA GPU Prices Surge: Tariffs and Manufacturing Costs Push RTX 5090 Above $2,500

NVIDIA has reportedly implemented a significant price hike across its AI and gaming GPU offerings, with the RTX 5090 now retailing for over $2,500. This increase is attributed to a combination of geopolitical tensions, rising manufacturing costs, and tariffs, impacting both consumers and server manufacturers.

According to a report by DigiTimes, NVIDIA has officially raised prices for all its GPU products. This decision follows challenges like export restrictions for AI chips in China, impacting the company's revenue. To maintain profitability, NVIDIA has reportedly increased prices on consumer cards like the GeForce RTX 5090 and AI accelerators such as the H200 and B200.

The RTX 50 series launch was already marred by poor inventory levels and inflated prices, making it rare to find cards at MSRP. Now, retailers are selling the RTX 5090 and other models at significantly higher prices than just weeks ago, with a 10-15% increase observed in Taiwan.

A key factor behind the price hikes is NVIDIA's shift of foundry orders to TSMC Arizona. Moving production out of Taiwan and manufacturing in the US incurs higher costs, which are passed on to consumers. While NVIDIA aims to mitigate revenue losses from tariffs, the price increase makes the RTX 50 series less appealing, potentially impacting sales volume.

GeForce RTX 5070
GeForce RTX 5070

AI accelerators like the H200 and B200 have also experienced a 10-15% price increase, leading server manufacturers to revise their price quotes. NVIDIA seems determined not to compromise on profitability after facing export restrictions, shifting the financial burden onto end-users.

Tom's Hardware reports that the price surge is exacerbated by the shift of Blackwell chip production to TSMC's US plant, driving up material and logistical costs. However, there's some hope for relief as the U.S. and China tentatively agreed to a trade deal, potentially lowering tariffs. Though, it could take some time for these savings to filter down to consumers.

PCMag highlights that GPU prices have increased across Nvidia's RTX 5000 series and AMD's Radeon 9070 XT due to tariffs. GPUs have long been assembled in China, facing substantial import duties. The GeForce RTX 5090, originally priced at $1,999, now sees prices jump by $600 to $700.

President Trump's tariffs on Chinese-assembled goods are a major cause of the price increases. While PC graphics cards were initially exempt from a 125% tariff, they were later hit with a 10% duty, which increased to 20% in March. Furthermore, a 25% tariff targeting PC parts, including graphics cards, might be reinstated unless the White House intervenes.

Are these price increases a temporary reaction to geopolitical tensions and tariff policies, or will they become a permanent feature of the GPU market? Share your thoughts and predictions in the comments below!

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