Nvidia GPU Warranty Costs Surge Over 1,000 Percent in 2025

Nvidia experienced a dramatic surge in GPU warranty claim costs during 2025, with expenditures climbing to $894 million from $81 million in 2024. This increase of over 1,000 percent reflects a significant rise in both the volume and cost of claims that exceeds the growth expected from increased sales.

A report by Warranty Week noted that Nvidia's warranty rate, measured as the cost of claims relative to revenue, grew eightfold from 0.1 percent in 2024 to 0.9 percent in 2025. The spike correlates with rising VRAM prices late in the year, although the report does not quantify the specific impact of VRAM or confirm if melting RTX 5090 cards contributed to the totals.

Other industry players saw similar but less severe trends. AMD reported an increase in warranty costs from $110 million to $238 million over the same period, with its warranty rate rising from 0.4 percent to 0.7 percent.