A new industry report indicates that AMD and Nvidia may scale back or discontinue production of budget and mid-range graphics cards as global DRAM shortages drive up component costs. The development, if confirmed, could restrict affordable GPU options for entry-level gamers and increase prices across the consumer graphics market.
According to reporting from Korean outlet Hankyung, rising GDDR memory prices have significantly increased the bill of materials for lower-cost GPUs, prompting manufacturers to consider shifting production capacity away from budget-oriented models. While no specific product lines were identified, industry observers suggest that Nvidia’s 50- and 60-series GPUs, along with comparable AMD models, are most likely to be affected due to their relatively narrow profit margins.
The memory shortage is linked to a rapid surge in demand from data centre operators, who are absorbing a large share of global DRAM production. This has reportedly led to “panic buying” within the supply chain, leaving consumer hardware makers with limited inventory and sharply higher procurement costs. As manufacturers prioritise segments that deliver higher returns, consumer GPUs, particularly lower-priced variants, may be deprioritised.
The situation follows recent warnings from hardware vendors, including ASUS, about potential price increases for consumer devices if DRAM supply remains constrained. With RAM prices already rising steeply, analysts suggest that mainstream GPU pricing could follow a similar trajectory in the coming weeks, further impacting an already strained PC gaming market.
The report carries a moderate rumour rating, with limited corroboration from other industry sources. However, current DRAM market trends align with the possibility of reduced GPU production and higher consumer prices. Neither AMD nor Nvidia has issued formal statements regarding changes to their GPU roadmaps. |
