AI-Driven Memory Shortage Spikes GPU Prices and Cuts Models
AMD and Nvidia face production hurdles and price hikes as a global DRAM shortage driven by AI demand disrupts the graphics card market.
A global memory shortage fueled by artificial intelligence demand is destabilizing the PC hardware industry, triggering price spikes for RAM, SSDs, and graphics cards. AMD is attempting to stabilize retail pricing through strategic partnerships with DRAM manufacturers to keep Radeon RX 9000 series cards close to suggested MSRPs. However, current market prices remain elevated; the RX 9070 XT is retailing for $729.99 despite a $599 suggested price.
David McAfee, AMD's VP and General Manager of Ryzen CPU and Radeon Graphics, noted that without affordable memory, the economics of building graphics cards with add-in board partners are tough to manage. This supply crunch has also impacted Nvidia, contributing to production concerns for the GeForce RTX 50-series. The shortage creates a profit incentive for manufacturers to prioritize high-end models over mid-range options.
This trend was highlighted when Asus inadvertently announced the discontinuation of the GeForce RTX 5070 Ti. Because the 5070 Ti shares 16GB of GDDR7 memory and GB203 silicon with the more expensive RTX 5080, manufacturers are shifting limited RAM allocations toward higher-margin units. Additionally, Micron Technology has ended its consumer-facing Crucial brand to prioritize larger strategic customers amid the AI boom.
