Skip to main content

Nvidia is boasting to investors about rising GPU prices

In a recent meeting with investors, Nvidia proudly announced that users who choose to upgrade to RTX 3000-series graphics cards are forced to spend around $300 more than they spent on their previous GPU.

This massive increase highlights the impact the chip shortage has had on the market and shows just how difficult it is to build a new PC in 2022.

A screenshot from the Nvidia investor presentation.
Nvidia

At this point in time, most of us are familiar with the perils of the GPU shortage. Over two years in, buying a graphics card is still difficult. Yes, there are plenty of GPUs available at various online retailers, but none of them are priced fairly. Although we’re seeing a steady decrease in pricing, we’re still far off from being able to buy one of the best graphics cards at MSRP the way we were once able to do. The question is, will such a time ever come back?

During the investors day, Nvidia confirmed that RTX 3000-series GPUs are much more expensive than the previous generations. Jeff Fisher, Nvidia’s senior vice president, said it clearly: “The GPU is offering more value than ever. Based on our data, they are spending $300 more than they paid for the graphics card they replaced.”

Some of that $300 can definitely be attributed to the chip shortage. Although Nvidia’s graphics cards have a much more reasonable MSRP, spotting one priced at its intended amount is almost impossible and happens very rarely. Retailers such as Best Buy sometimes hold special restocking events and sell the GPUs at MSRP, but those are rare, and in Best Buy’s case, now locked behind a paywall.

However, we can’t blame the GPU shortage for everything — the prices have gone up regardless. As PCMag compares, the GTX 1070 launched in 2016 with an MSRP of $379. Its current-gen counterpart, the RTX 3070, started out priced at $499. This price jump could be considered reasonable given the vast increase in power compared to the GTX 1070, but it’s still an increase. Unfortunately, most people are unable to get an RTX 3070 for that price anyway and thus are forced to pay higher premiums than what Nvidia asked for in the first place.

The Nvidia RTX 3090 installed inside a gaming PC.
Jacob Roach / Digital Trends

The pricing situation ties neatly with another thing Fisher said: Only about 29% of Nvidia’s gaming customers currently own an RTX GPU. This means that 71% of users are still using older GTX-series graphics cards from at least two generations ago.

While this means good news for Nvidia — the market is still untapped and there is a lot of potential for future earnings — it spells bad news for gamers at large. The fact that only 29 percent of users were able to upgrade their PC since 2018 highlights just how expensive it has gotten to stay on top of the latest hardware.

At a time when buying a new graphics card can sometimes be more expensive than building a whole gaming PC was in 2017, it’s more important than ever that the GPU market receives some reinforcements. Having an abundance of GPUs readily available would naturally lower the prices. In that regard, things are looking up — Nvidia, AMD, and even Intel are all set to release next-gen graphics cards this year. Perhaps with the increased supply, the prices will continue dropping and will one day become reasonable once again.

Monica J. White
Monica is a UK-based freelance writer and self-proclaimed geek. A firm believer in the "PC building is just like expensive…
Everything you need to know about buying a GPU in 2024
RTX 4090.

The graphics card, also known as the GPU, is arguably one of the most exciting components in any PC build. Alongside the processor, your graphics card often has the greatest impact on the overall performance of your PC. That makes it a pretty high-stakes purchase, especially if you consider that GPUs can get pretty expensive.

The GPU market has a lot to offer, and that's regardless of your needs and your budget. Whether you're aiming for something super cheap to support some light browsing or a behemoth to handle the most GPU-intensive games, you have lots of options. In this guide, we'll show you what to look out for so that you can pick the best GPU that fits your budget and needs.
Nvidia, AMD, or Intel?
Consumer graphics cards are generally split into two categories -- integrated and discrete graphics. Since you're here, you're most likely looking for a discrete (or dedicated) GPU, and that's what we're going to focus on in this article.

Read more
I’ve reviewed every AMD and Nvidia GPU this generation — here’s how the two companies stack up
Three graphics cards on a gray background.

Nvidia and AMD make the best graphics cards you can buy, but choosing between them isn't easy. Unlike previous generations, AMD and Nvidia trade blows point-for-point in 2024, and picking a brand to go with isn't as easy as counting the dollars in your wallet.

I've reviewed every graphics card AMD and Nvidia have released this generation, comparing not only raw performance, but also features like DLSS and FSR, ray tracing performance, and how VRAM works in modern games. After dozens of graphics card reviews, here's how AMD and Nvidia stack up against each other in 2024.
Nvidia vs. AMD in 2024

Read more
Meet Blackwell, Nvidia’s next-generation GPU architecture
Nvidia introducing its Blackwell GPU architecture at GTC 2024.

We finally have our first taste of Nvidia's next generation of GPUs, named Blackwell. Sure, they're built for enterprises, and no, they won't run Cyberpunk 2077 (at least not officially). But this is the first look we've have at what Nvidia is cooking up for its RTX 50-series GPUs, which are rumored to launched sometime in the next year.

The GPU we have today is the B200 -- Blackwell 200, if you can spot it -- that comes packed with 208 billion transistors. The architecture is built on TSMC's 4NP node, which is an enhanced version of the 5nm node. It's a little surprising given that Nvidia's Ada Lovelace GPUs are built with TSMC's 4N node -- one refinement step away from 4NP. Nvidia notes that it's using a custom version of this process, however.

Read more