AMD Expected to Raise Component Prices for Graphics Cards as Well

Against the backdrop of a sharp increase in the cost of parts and technological raw materials in the global market, major semiconductor manufacturers are being forced to revise their pricing policies. Citing sources from Board Channels Forums, AMD plans to raise purchasing prices for its graphics processors and memory kits by at least 10 percent. These changes have drawn market attention as they could lead to higher prices for technological devices for end consumers, reports Ixbt.com reports .

It is reported that the decision regarding the price increase for «GPU + memory» bundles intended for partners was actually made as early as last month. However, at that time, AMD temporarily postponed this step due to low market demand, sufficient product reserves in distributors' warehouses, and fears that a price surge would negatively impact sales.

A Step Following Nvidia

The critical turn in the situation was triggered by the actions of the main competitor. According to ixbt.com, NVIDIA significantly increased its product prices — by up to 30 percent. The «greens» raised the prices not only for GPU and DDR6 memory kits, but also for the latest generation DDR7 memory bundles. Following this, AMD also found it unfeasible to keep its prices down and ultimately decided to put the changes into effect.

According to the new pricing policy, partner manufacturers of Radeon graphics cards will start purchasing components at increased rates. It is worth noting that this is not yet about the recommended retail prices of finished products, but specifically about the cost of components intended for partner manufacturers.

What Will Be the Impact on the Consumer Market?

The increase in component costs does not automatically mean that the prices of finished graphics cards in stores will also become exactly ten percent more expensive. The point is that the graphics processor and memory make up only a part of the device's total cost. Therefore, the growth rate for the final buyer may turn out to be somewhat lower.

However, experts do not rule out other echoing factors. If other necessary parts, including even packaging materials, continue to get more expensive, there is a possibility that prices for consumers will rise higher than expected. Market participants are preparing to experience a general period of price increases in the graphics card segment in the coming months.