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Nvidia GPU Prices May Rise as Production Cuts Loom
Technology

Nvidia GPU Prices May Rise as Production Cuts Loom

IGNJan 7
3 min read
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Key Facts

  • ✓ Nvidia may cut consumer graphics card production by 30%-40% due to DRAM demand and AI data center focus.
  • ✓ GPU prices are expected to rise in 2026 as a result of dwindling supply.
  • ✓ Select GeForce RTX 5070 Ti, RTX 5070, and RTX 5060 Ti 16GB cards are currently available at MSRP at major retailers.
  • ✓ The RTX 5070 Ti offers performance similar to the RTX 4080 Super but at a lower price point.

In This Article

  1. Quick Summary
  2. Potential Supply Reductions and Market Impact
  3. Current Generation Availability at MSRP
  4. Performance Breakdown: The 5070 and 5060 Ti
  5. High-End Value: The 5070 Ti

Quick Summary#

Reports indicate that Nvidia may cut back production on its consumer graphics cards by up to 30%-40% in 2026. This potential reduction is attributed to high demand for DRAM and a shift in focus toward AI data centers. Consequently, GPU prices are expected to increase later this year.

Despite the looming supply constraints, current generation GeForce cards are still available at standard retail pricing. Select models of the RTX 5070 Ti, RTX 5070, and RTX 5060 Ti 16GB can be found at retailers such as Walmart and Amazon. The RTX 5070 provides solid 1440p gaming performance, while the 16GB version of the 5060 Ti is highly recommended for 1080p gaming. For high-end users, the RTX 5070 Ti offers excellent 4K performance and value compared to previous flagships.

Potential Supply Reductions and Market Impact#

The outlook for GPU pricing in the short term appears challenging for consumers. Documents and reports suggest that Nvidia may reduce the manufacturing output of its consumer graphics cards by a significant margin, specifically between 30% and 40%.

This potential reduction in production is driven by two primary factors:

  • High global demand for DRAM components.
  • A strategic pivot by Nvidia to prioritize supply for AI data centers.

As a direct result of this dwindling supply chain, prices for consumer graphics cards are expected to rise throughout 2026. However, the window to purchase current generation hardware at Manufacturer's Suggested Retail Price (MSRP) is still open for the time being.

Current Generation Availability at MSRP#

Consumers seeking an immediate upgrade can still acquire current generation GeForce graphics cards without paying inflated premiums. Select variants of the RTX 5070 Ti, RTX 5070, and RTX 5060 Ti 16GB are currently listed at standard pricing on platforms like Walmart and Amazon.

The availability of these cards at retail pricing offers a brief respite before the anticipated price hikes take effect. However, the duration of this pricing stability remains uncertain.

Performance Breakdown: The 5070 and 5060 Ti#

The GeForce RTX 5070 is positioned as a strong mid-range option, priced at $549. It delivers performance on par with the previous generation RTX 4070 Super, which was noted for excellence in 1080p and 1440p gaming. The 5070 enhances this with DLSS4 and multi-frame generation capabilities. It features 12GB of GDDR7 VRAM, allowing for high-fps gaming at 1440p. While it can handle less demanding games at 4K, users seeking robust 4K performance may prefer the 5070 Ti.

The GeForce RTX 5060 Ti is available in two memory configurations: 8GB and 16GB. The 16GB model is strongly recommended for those who can afford the price difference, as performance benchmarks show a significant gap between the two versions. Priced at $449.99, the 16GB model is an excellent choice for 1080p gaming. It outperforms the RTX 4060 Ti by approximately 20% and the RTX 3060 Ti by 40%, even without utilizing DLSS4.

High-End Value: The 5070 Ti#

The GeForce RTX 5070 Ti, priced at $749, is highlighted as the premier option among the released Blackwell architecture cards. It excels in 4K gaming performance while maintaining a reasonable price point.

The card performs comparably to the RTX 4080 Super but includes the advantages of newer GDDR7 VRAM and DLSS 4 with multi-frame generation. For users interested in AI applications, the 5070 Ti offers better value than the RTX 5080 because both cards possess the same amount of RAM (16GB).

When compared to competitors, the RTX 5070 Ti offers roughly equivalent raw performance to the AMD RX 9070 XT. However, the 5070 Ti is noted for having considerably superior upscaling technology and ray tracing performance.

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