AMD hikes processor and graphics card prices, pushing PC build costs higher

AMD's Price Hike: Gamers Brace for More Expensive Builds

Building a new gaming PC just became a steeper financial climb. On top of the already escalating costs of RAM and storage, the prices of both processors and graphics cards are now on the rise. Industry insiders have confirmed that AMD quietly implemented wholesale price increases for its chips on December 1st. This adjustment affects not only the cutting-edge Ryzen 9000 series but also extends to older, established models. The ripple effect will gradually appear on retail shelves as vendors replenish their stock with the updated pricing.

Initially reported by Overclock3D, the shift in pricing occurred overnight, specifically on the cusp of December. Because these adjustments were made at the distributor level, consumers won't see an immediate, dramatic surge on price tags. Many retailers, still riding the wave of Black Friday and Cyber Monday promotions, are currently holding onto their existing inventory at older prices. However, as these pre-increase stock levels deplete, shops will inevitably resupply with components priced according to the new wholesale rates. This means AMD's entire processor lineup, from the latest Ryzen 9000 processors to their predecessors, is poised for a price increase.

Interestingly, AMD has remained tight-lipped regarding the precise reasons behind this move, leaving the market to speculate. Theories range from increased manufacturing costs for silicon wafers to a strategic margin recalibration following a period of aggressive holiday season discounts. The exact quantum of the price increase also remains elusive; partners report varying levels of hikes across different models, with the company offering no definitive guidance. This timing is certainly opportune. Coming immediately after the major post-Thanksgiving sales events, AMD can frame these changes as a 'return to normal pricing' rather than a direct, punitive increase.

Adding to the brewing storm, whispers of price hikes for AMD's graphics cards are also surfacing. According to Chinese tech outlet Board Channels, AMD partners have already received advance notice of an initial price adjustment wave. Graphics cards equipped with 8GB of VRAM are expected to see an increase of approximately $20, while 16GB variants could climb by as much as $40. These changes are anticipated to roll out before the year concludes. Reports suggest this could impact the entire Radeon lineup, spanning from the newest RDNA 4 architecture-based cards to older series, depending on what inventory partners receive under new contractual terms.

When juxtaposed with earlier, somewhat speculative claims about a lack of significant new GPU releases until 2027, this current price escalation paints a more concrete picture of AMD's immediate strategy. Insiders from UDN further indicate that a potential second wave of price increases could affect all AMD GPUs by at least 10%. The combined effect of rising CPU and GPU prices, coupled with the already soaring costs of RAM and SSDs, will undoubtedly make building a PC on AMD's platform significantly more expensive. This memory price surge isn't exclusive to AMD; Nvidia will likely feel its impact as well, given the interconnected nature of the semiconductor supply chain.

The pressure isn't solely on Team Red. Intel, according to internal sources, is also reportedly preparing for a CPU price hike of around 10%, possibly attributed to performance concerns with their upcoming Arrow Lake processors and broader market dynamics. With the rapid escalation in RAM prices and the concurrent rise in SSD costs, the total cost of assembling a new PC has ballooned dramatically in mere weeks. And as the market currently stands, this upward price trajectory shows no signs of abating.