Why GPUs Are So Expensive Today: A Market Perspective
If you plan to upgrade your graphics card, be prepared to face skyrocketing prices. In recent years, the GPU market has continuously set new price records, leaving consumers frustrated. But what exactly has caused this?
1. Impact of Global Tariff Policies
Trade tariffs between the U.S. and Asian countries have created a shockwave in the semiconductor industry. According to the Information Technology and Innovation Foundation (ITIF), tariffs ranging from 10–20% on imported electronic components have raised final product costs by an average of 15–25%.
The situation becomes even more complicated because the global supply chain depends heavily on a small number of factories in Taiwan and South Korea. Instability in international trade relations has triggered a domino effect, pushing up prices not only for GPUs but also for motherboards, RAM, and other components.
2. Supply Control Strategies by GPU Giants
Nvidia and AMD learned a tough lesson from the 2021 GPU shortage. Instead of flooding the market with products, these companies now actively control supply by:
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Gradually reducing the production of older product lines (RTX 40-series and RDNA 3)
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Adjusting production schedules quarterly
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Prioritizing distribution for major partners
As a result, users can no longer easily find older cards at cheap prices. For example, the RX 6950 XT, which used to sell at 70% of its launch price, now costs 85–90% of the MSRP.
3. Lack of Competition in the High-End Segment
The GPU market today is like a one-sided boxing match. While Nvidia dominates the high-end segment with the RTX 5090 priced at $2,000–3,000, AMD has withdrawn from this race. Intel’s Arc GPUs show potential but remain focused on entry-level markets.
According to Jon Peddie Research, the Q1 2025 market share for discrete GPUs shows:
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Nvidia: 78% (+5%)
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AMD: 17% (-3%)
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Intel: 5% (-2%)
This lack of competition allows Nvidia to set prices without much concern for rivals. Even with the sky-high price of the RTX 5090, consumers have little choice but to buy.
4. Supply and Demand in Uncertain Times
The fundamental economic principle still drives the GPU market:
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Limited supply: Supply chain crises, wafer shortages, rising production costs
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High demand: Gaming, AI, and crypto mining keep demand at record highs
According to the Steam Hardware Survey, the number of users with high-end GPUs (RTX 3080 or higher) increased by 35% in 2024, proving that the market is still willing to pay premium prices.
Advice for Consumers
Given the rising prices, here are some smart strategies to consider:
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Wait for the next GPU generation: AMD’s RDNA 5 promises more competitive pricing.
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Look for second-hand cards: Many mining cards are resold at good prices after ETH switched to PoS.
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Optimize your current system: Upgrading CPU, RAM, or SSD can improve overall performance.
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Track promotions: Subscribe to trusted retailers for discount alerts.
Finally, remember that the GPU market is cyclical. As 3nm chip manufacturing becomes more widespread and new semiconductor plants open, there is hope for more reasonable prices in the future.