Recent rumors suggest that NVIDIA will discontinue the RTX 5090 graphics card because they want to shift GPU cores to the more profitable professional card market. After all, gaming cards sell for only $6,000, while professional cards start at $16,000.
This change reflects the new challenges faced by graphics cards amid rising memory prices and an explosion in AI demand. But the scary part isn't just the price hike; it's that the increase in graphics card prices won't end with one or two adjustments.Behind this lies the long-term normalization of high prices, with graphics card prices set to rise significantly further.
The reasons behind this are multifaceted. First is the cost side: rising memory prices have had the biggest impact, but they aren't the only factor. This year, we've heard about price hikes for various electronic components—from basic capacitors and inductors to PCBs, fiberglass cloth, and power semiconductors, as well as bulk raw materials like copper and tin. Even transportation and logistics costs are rising.
Anyway, hardly any segment of the electronics and semiconductor design supply chain is exempt from price increases.This has pushed motherboard and graphics card manufacturers' profit margins to the limit, forcing prices to be passed on from production to consumers time and again.
Add to this the all-purpose excuse of surging AI demand, and the price hikes seem unstoppable. Although there are many concerns about an AI bubble bursting, as long as the bubble doesn't truly burst, the narrative driving up prices can't be disproven, and the upward trend in memory and graphics card prices will continue.
As we previously reported, NVIDIA card prices have led the way in increases over the past year.Among them, the RTX 5090 graphics card has risen from €2,600-€2,900 to €6,000-€6,800 over the past year, an increase of over 132%.
Other RTX 50 series graphics cards have also seen overall price increases of over 50-70%. While AMD and Intel graphics cards have also become more expensive, their hikes haven't been as extreme. NVIDIA cards saw an average increase of 66%, AMD cards 46%, and Intel cards 38%.
Therefore, even after a 50-60% price increase, AMD and NVIDIA will continue to adjust prices. The RTX 5090 could even see its price double. NVIDIA seems unconcerned about these margins and is still planning to discontinue the RTX 5090 to focus on more profitable professional cards.