The ongoing tariff wars have started impacting NVIDIA’s supply chain, leading to a noticeable increase in prices across all its GPU offerings. The cost of NVIDIA’s RTX 5090 GPU has now surged past $2,500 at multiple retailers, marking a significant 10%-15% price hike.
Geopolitical tensions and trade uncertainties have pushed companies like NVIDIA to make drastic moves, such as relocating parts of their supply chain to the United States. These relocations aim to offset revenue losses from hefty tariffs. As a result, NVIDIA has officially raised prices on its entire range of GPUs, impacting consumer models like the GeForce RTX 5090 as well as AI chips like the B200 accelerator. This suggests that NVIDIA is determined to maintain its profit margins.
The launch of NVIDIA’s RTX 50 series has faced hurdles from the start, with poor inventory levels and inflated prices. Finding models at their suggested retail prices was rare, and now, prices are even steeper across retail platforms. In Taiwan, the flagship NVIDIA RTX Blackwell GPU has seen a price increase of 10%-15%, signifying an official price adjustment.
While similar price hikes are seen in other RTX 50 models, they are less pronounced than those for the RTX 5090, mainly because there’s limited room for further increases. One key reason for this price surge is NVIDIA’s shift in foundry orders to TSMC Arizona. Moving production from Taiwan and operating within the US incurs higher costs, reflected in consumer prices. Unfortunately, this makes the RTX 50 series less appealing, indicating that NVIDIA might still face challenges.
In the AI segment, accelerators such as the H200 and B200 have also experienced a 10%-15% increase. Server manufacturers are adjusting their prices, signaling readiness to absorb these new costs. With the H20 export restrictions impacting revenue, NVIDIA is focused on protecting its profitability, transferring the cost burden to users.
