Tag: Nvidia GeForce RTX 5000

  • DRAM Crisis May Trigger New GPU Shortages, Nvidia Cuts RTX Production

    DRAM Crisis May Trigger New GPU Shortages, Nvidia Cuts RTX Production

    Key Takeaways

    1. Nvidia’s GeForce RTX 5000 Super series plans to enhance graphics memory by 50% have been canceled due to DRAM supply issues.
    2. Production of GeForce RTX 5000 graphics cards will be cut by 30-40% in the first half of 2026, affecting affordable models like the RTX 5060 Ti and RTX 5070 Ti.
    3. Nvidia will shift focus from consumer graphics cards to more profitable server and AI GPUs.
    4. Anticipated lower demand for graphics cards in 2026 could lead to limited availability and potential price increases.
    5. The ongoing DRAM crisis may result in a 20% price increase for laptops and a return of lower RAM configurations in devices like notebooks and smartphones.

    Nvidia’s GeForce RTX 5000 Super series was supposed to provide 50% additional graphics memory at the same price point, which would have greatly enhanced the appeal of Nvidia’s gaming graphics cards in 2026. Unfortunately, due to ongoing issues with DRAM supply, Nvidia has decided to scrap these plans. It seems the “Super” GPUs won’t be making an appearance in this generation for desktop or laptop users.

    Production Cuts Expected

    According to reports from Board Channels and Benchlife, Nvidia intends to cut down the production of GeForce RTX 5000 gaming graphics cards by about 30 to 40% in the first half of 2026. This reduction will likely hit the Nvidia GeForce RTX 5060 Ti 16 GB and the GeForce RTX 5070 Ti hard, as these are their more affordable options with 16 GB of graphics memory. Instead of focusing on these consumer cards, Nvidia will probably allocate their manufacturing resources to create more profitable server and AI GPUs.

    Anticipated Decrease in Demand

    Nvidia anticipates that the demand for graphics cards in 2026 will be lower compared to this year, mainly due to the absence of new product launches. However, such a significant cut in production could still lead to very limited availability. This situation could potentially trigger price hikes, which may mean that the GPU shortage we saw in 2020 could occur again just six years later.

    The ongoing DRAM crisis, primarily driven by OpenAI, is expected to have long-lasting consequences in 2026. Experts are forecasting that laptops might see at least a 20% price increase. Moreover, notebooks featuring just 8 GB of RAM and smartphones with 4 GB of RAM are likely to make a comeback in the market. Even new products like the Nintendo Switch 2 or the Steam Machine could face price increases due to the high costs associated with DRAM.

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  • Dram Price Surge May Raise Smartphone and Mid-Range GPU Costs

    Dram Price Surge May Raise Smartphone and Mid-Range GPU Costs

    Key Takeaways

    1. Rising VRAM costs may impact budget-friendly graphics cards like Intel Arc B580, Radeon RX 9060 XT, and Nvidia GeForce RTX 5060 Ti.
    2. Wholesale DRAM prices have surged by 137% recently, with predictions of continued increases until 2026.
    3. High demand from AI companies is straining DRAM production, leading to higher costs for various electronic devices.
    4. Nvidia has canceled the GeForce RTX 5000 Super series due to increased VRAM expenses, affecting mid-range and entry-level graphics card production.
    5. The gaming industry may shift focus towards premium-priced products as manufacturers adapt to rising memory costs and changing market dynamics.

    More costly VRAM might create issues for budget-friendly graphics cards like the Intel Arc B580 featuring 12GB (starting at $249 on Amazon) or the Radeon RX 9060 XT and Nvidia GeForce RTX 5060 Ti, both equipped with 16GB VRAM. A recent report from the Korean news source Hankyung indicates that wholesale DRAM prices surged by 137% just in the last month.

    Future Price Trends

    Current predictions suggest that prices will keep climbing until 2026. This rise is largely driven by the increasing demand for DRAM from AI firms such as OpenAI, while producers like Samsung, Micron, and SK Hynix are struggling to quickly increase their output in the near term. The result of this situation is likely to be higher costs for smartphones, tablets, and laptops. The influence of escalating DRAM prices is especially significant for graphics cards, where memory expenses make up a considerable part of the overall production costs.

    Nvidia’s Strategy Shift

    Due to these factors, Nvidia has reportedly decided to cancel the entire GeForce RTX 5000 Super series, as these graphics cards would have become prohibitively expensive due to the 50% increase in VRAM. TrendForce anticipates that AMD, Nvidia, and Intel will scale back the manufacturing of mid-range and entry-level graphics cards and raise their prices, as continuing to produce them would not be viable given the rising memory expenses. Some sources have already suggested that certain lower-cost GPUs will be phased out, which we mentioned earlier today. The surge in AI is thus impacting the gaming sector directly, which is likely to shift its focus towards premium-priced products in the upcoming year.

    Conclusion

    In summary, the soaring prices of VRAM and DRAM will certainly have a ripple effect on the graphics card market, pushing manufacturers to adapt their strategies or risk losing profitability. As the demand for AI-related technologies grows, the gaming industry may find itself in a challenging position, needing to balance affordability with the rising costs of production.

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    Dram Price Surge May Raise Smartphone and Mid-Range GPU Costs

     

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