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NVIDIA Increases GPU Prices by 10-15% Amid Surging Manufacturing Costs and Tariffs

NVIDIA has reportedly raised the official prices of nearly all its products by 10-15% to mitigate the effects of tariffs and increased manufacturing costs. According to Digitimes Taiwan, the company is facing "multiple crises," including a potential $5.5 billion hit to its quarterly earnings due to export restrictions on AI chips, particularly the H20 series, which are banned from being sold to China. To maintain stable profitability, CEO Jensen Huang has been actively traveling between the U.S. and China to manage the impact of these tariffs. As a result, NVIDIA has adjusted prices for most of its lineup, allowing its partners to increase their prices as well. The price hikes affect both gaming graphics cards and AI GPUs, with gaming cards seeing a 5-10% increase and AI chips facing up to a 15% rise. Despite these price adjustments, Digitimes predicts that NVIDIA's upcoming financial report will likely meet or exceed forecasts, driven by robust demand for AI chips outside of China and increased spending from cloud service providers. This optimism is supported by strong performance in various segments, even as the company grapples with economic challenges. The report highlights the RTX 5090 as a specific example, noting that its initial high demand led to premium pricing upon release, with channel prices quickly doubling. Following the export ban on AI chips, the RTX 5090's price surged further, jumping from approximately NT$90,000 to NT$100,000. Other RTX 50 series cards also experienced similar 5-10% increases. NVIDIA has not only raised the prices of its consumer products but also increased the cost of its H200 and B200 AI chips. Consequently, server vendors have followed suit, raising prices by up to 15%. These increases are partly due to the shift in production of the Blackwell chips to TSMC's U.S. facility, which has significantly raised production, material, and logistics costs. There is some hope that these measures may be temporary. Recently, the U.S. and China reached a trade deal that is expected to reduce tariffs by 115% through a 90-day pause on reciprocal tariffs. However, the relief could take time to reflect in consumer prices, as existing price hikes are gradually passed down through the supply chain. For the latest updates and insights on this and other tech news, follow Tom's Hardware on Google News to stay informed. Make sure to click the Follow button to receive their timely news, analysis, and reviews directly in your feed.

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NVIDIA Increases GPU Prices by 10-15% Amid Surging Manufacturing Costs and Tariffs | Trending Stories | HyperAI