Budget Graphics Cards Face Extinction Due to Memory Market Crisis

Amid an acute shortage of memory modules, graphics accelerator manufacturers AMD and NVIDIA are considering halting production of their most affordable models. This is due to a rapid increase in production costs that is making them unprofitable to produce. Demand for DRAM and VRAM chips from major tech companies, which are actively developing artificial intelligence and data centers, is vastly outstripping supply. This has already led to a noticeable increase in the price of RAM, and now the wave has reached a key component for gamers—graphics cards.

According to industry sources, a logical step for AMD and NVIDIA in this situation is to shift their focus to segments with high margins. In other words, the companies will prioritize supplying chips for the data center and AI markets, as well as flagship gaming models, where the profit per unit is significantly higher.

Reports suggest that the most at risk of disappearing are precisely the "people's" lineups, traditionally the most popular among the majority of users. This could potentially include models like NVIDIA's GeForce RTX 5060 or 5050 class, as well as analogous offerings from AMD, such as the Radeon RX 9060 XT. Their low initial markup makes them the most vulnerable when component costs rise.

If the current trend continues, it will not only reduce the assortment in the lower price range but could also trigger an overall price increase for the remaining graphics cards on the market. For the end user, this means the era of affordable gaming PC upgrades could be put on hold.

Earlier reports only serve to confirm these worrying trends. According to sources, AMD has already notified its partners of upcoming price increases for its entire range of graphics cards. The reason is the same—the relentless rise in the cost of memory chips.