nvidia grapples with rtx 5090 price hikes amidst tariff woes
Silicon Valley, Thursday, 6 February 2025.
NVIDIA is facing significant challenges with the pricing of its RTX 5090 GPUs due to tariffs and burgeoning demand. As of February 5, 2025, prices have surged by 15-25%, translating into an increase of over $300 per unit. This price increment may deter budget-conscious gamers and technology enthusiasts, impacting NVIDIA’s market positioning. The tariffs, part of the ongoing trade policies initiated under former President Trump, have compounded the supply chain and manufacturing cost issues. NVIDIA and AMD are rushing shipments to avoid further tariff impositions, but the RTX 5090 is already priced well above the manufacturer’s suggested retail price in many regions. Reports indicate that prices have even doubled in certain areas. Various manufacturers like ASUS and MSI are adjusting their prices, with MSI’s top-tier SUPRIM LIQUID SOC now retailing at $2,499.99, showcasing the broader impact on the semiconductor market.
Market response and stock implications
NVIDIA’s stock has taken a significant hit, plummeting 17% on January 27, 2025, resulting in a staggering $589 billion loss in market value [3]. The decline comes amid broader market concerns about DeepSeek’s competitive performance [3]. Adding to NVIDIA’s challenges, President Trump met with CEO Jensen Huang on February 4, 2025, to discuss AI policies and chip export controls [4], creating additional uncertainty in the market [GPT].
Global trade tensions escalate
China’s recent announcement of four countermeasures against U.S. trade, including tariffs ranging from 10% to 15%, has further complicated the situation [4]. The semiconductor industry faces mounting pressure as Trump has proposed a 100% tariff on TSMC [4]. These developments occur as the Federal Reserve maintains interest rates at 4.25%-4.50% [3], creating a complex economic environment for tech companies [GPT].
Consumer impact and alternatives
With MSI implementing price increases of 15-25% on their RTX 5090 lineup [1], consumers are exploring alternatives. The RTX 5080 emerges as a potential option, offering strong performance at a lower price point [1]. AMD’s upcoming Radeon RX 9000 series could provide competitive alternatives in the high-end GPU market [1]. Market analysts predict continued supply constraints for next-generation GPUs through 2025 [1].