AMD plans to spice up the worth of Radeon GPUs by 10% in early 2026, based on sources aware of the matter, capping a monumental 2025, and it isn’t even Christmas.
As analysts and traders heaped reward on the semiconductor big put up Q3 2025 earnings, AMD CEO Lisa Su stated:
“The demand for compute has by no means been better,” based on Su, with AI demand “insatiable” in the intervening time.
It is no surprise AMD is not slowing down. As an alternative, based on rumors from Tom’s {Hardware}, a value hike is on the playing cards in a 12 months AMD surreptitiously paid extra for components to maintain costs low.
The corporate’s first line of protection was inner; nonetheless, DRAM and VRAM costs have been too excessive for too lengthy, which has damage earnings. Quickly, increased prices will imply board costs go up, and players and PC builders can pay further on the register.
Nvidia can be going through the identical provide issues, however its scenario is totally different. The info middle big is laying aside launching new merchandise for customers as an alternative of reducing costs in a reminiscence market that’s changing into tighter. Clients should not anticipate Nvidia to decrease costs to get extra market share whereas reminiscence makers give attention to AI-class components.
The info middle is a very powerful half. Hyperscalers are racing to coach larger fashions, which is making it exhausting to get HBM and DDR5 RDIMMs. That is pushing wafer begins and back-end capability towards the merchandise that take advantage of cash. As fabs change their manufacturing to match that demand, client reminiscence is tight, and desktop GPUs really feel the hit straight away.
The improve determination now begins with reminiscence costs, not simply cores or clocks.Picture by I-HWA CHENG on Getty Photographs
That tilt has brought on DRAM prices to undergo the roof, and it has even affected GDDR6, the reminiscence that drives at present’s gaming PCs. Analysts now name the enterprise a “reminiscence bull market” since producers are placing AI accelerators forward of different components. For players, the selection on the high means fewer gross sales, much less inventory, and costs that go up with every new cargo.
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By the top of 2025, DRAM contract costs had gone up by three digits per 12 months, and spot markets have been going up as provide turned tighter. Costs for GDDR6 rose by round 33% to 43% for all speeds and densities.
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The following-gen GDDR7 pipeline stayed tight sufficient to maintain strain on current-gen components. Retail cabinets are behind contracts, however they do observe them. This means that the costs purchasers pay in 2026 will likely be primarily based on the present prices of the invoice of supplies offered by companions.
Anybody who needs to save cash mustn’t do it now. The Radeon RX 9070 XT got here out on Black Friday at $599, which made high-end efficiency out there to extra builders for a brief interval. The cardboard’s avenue value will in all probability go as much as the low to mid-$600s when wholesalers reload their cabinets at better prices. That is earlier than outlets add their very own pricing or native taxes.
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Board companions have made it plain that “now’s the time to purchase” if an improve was on the record earlier than. DDR5 system reminiscence is likewise falling behind. It hasn’t utterly accounted for adjustments in contracts and spots but, nevertheless it tends to go up in phases when older, cheaper inventory is bought. Anticipate fewer doorbusters, extra steady value flooring, and a smaller distinction between MSRP and what you actually pay in 2026.
The info point out why AMD cannot sustain with rising reminiscence costs. Within the third quarter of 2025, AMD bought $9.2 billion price of products. The GAAP gross margin was 52%, whereas the non-GAAP gross margin was 54%. These numbers are glorious, however they do not depart a lot area for steady subsidies in client graphics.
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The Gaming phase, the place GPU costs make an impression , made $1.3 billion, up 181% from the 12 months earlier than. This was largely due to gross sales of Radeon and semi-custom items. However that enhance nonetheless must take care of enter costs rising far faster than regular seasonal strain.
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Passing on a part of the fee retains unit economics steady with out the necessity to frequently lower costs to promote stock. It additionally helps AMD’s companion ecosystem keep robust, as a result of board makers have to deal with the identical value hikes for reminiscence and different components. Altering the costs is a technique to safeguard product cadence and channel well being in a market the place reminiscence, not silicon, units the tempo.
Nvidia is with an even bigger cushion, which is necessary for technique. Within the first quarter of FY26, the semiconductor big produced $44.1 billion, with $39.1 billion coming from information facilities. This made them fairly prone to put AI accelerators forward of mid-cycle client refreshes. If reminiscence retains operating out, one of the best factor to do is to maintain specializing in high-margin AI clients and steer clear of aggressive gaming promotions that might reduce revenues.
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That place has an impact on the entire market. AMD does not must lower its personal pricing with huge gross sales because it does not have a contest that units costs. Shops do not must have large offers to accumulate extra customers both. The tip result’s a client GPU stack that reveals the true prices of supplies as an alternative of the cycles from the previous two years, when costs have been fairly low-cost.
By the top of 2025, contract costs for DRAM may have gone up by thrice what they have been the 12 months earlier than.
GDDR6: rising by 33% to 43% in 2025
Radeon RX 9070 XT: $599 on Black Friday; with the worth bump, it should in all probability be within the mid-$600s.
The rise of AI is not solely shattering information in information facilities; it is also reworking how customers buy and use computer systems, starting with the reminiscence bus. GPUs would be the first to vary costs, as HBM, DDR5, and GDDR6 are all in excessive demand. RAM will not be far after.
The Christmas window for 2025 would look higher subsequent to the shelf tags for 2026 if you happen to’re planning a undertaking. Traders ought to take note of how rapidly reminiscence prices decline in gaming relative to how lengthy AI controls many of the provide.
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