AMD and Nvidia May Cut Budget GPUs Amid Rising Memory Costs

The budget graphics card segment is facing its toughest challenge in years. Industry reports suggest that AMD and Nvidia are evaluating whether to reduce or eliminate their low-end GPU offerings. The issue is not demand but the sharp increase in VRAM and GDDR memory prices, which has drastically reduced profit margins for entry-level products.
Memory has become one of the most expensive components in budget GPUs. According to recent data, Samsung has raised memory-chip prices by up to 60 percent, driven by supply disruptions and surging demand from AI applications. This spike means manufacturers risk selling budget GPUs at a loss if they continue producing them at current configurations.
As a result, vendors are reconsidering entire product tiers. Taiwanese PC makers, including ASUS, are reviewing plans to reduce memory configurations, while AMD and Nvidia weigh the possibility of discontinuing mid- to low-end models. The broader memory shortage is also affecting OEMs, motherboard brands, and server vendors, forcing them to scale back production.
Why It Matters
Budget GPUs have long been the backbone of affordable PC builds, serving students, first-time builders, and esports players who rely on 1080p performance without needing high-end hardware. If these cards vanish, entry-level gaming could become significantly more expensive, pushing buyers toward older-generation or used hardware. This shift carries risks, including reduced reliability and limited availability.
The disappearance of budget GPUs would also redefine what “affordable” means in PC gaming. Software requirements continue to climb, and without low-cost options, everyday players may find it harder to start or sustain gaming without stretching their budgets.
Possible Outcomes
– Retail impact: If AMD and Nvidia proceed, retailers may begin phasing out low-end models, leading to early stock depletion.
– Market shift: Manufacturers will prioritize premium GPUs with healthier margins, leaving fewer choices for budget-conscious buyers.
– Alternatives: Integrated graphics or cloud gaming may become more common substitutes for entry-level users.
Memory suppliers expect elevated pricing well into next year, suggesting that this trend will not reverse quickly. For now, gamers seeking budget performance may want to secure existing cards while prices remain relatively stable, as the definition of “entry-level” could soon change across the industry.