#What Happened with Nvidia's RTX 5070 Ti and 5060 Ti 16GB Models?
Nvidia has decided to terminate production on its RTX 5070 Ti and 5060 Ti 16GB graphic cards. This development has been confirmed by ASUS, Nvidia’s primary add-in board partner, stating that both models are officially reaching their end of life. As a result, supply is dwindling across various markets, including Australia and the U.S. Expect retailers to face a lack of incoming shipments during the first quarter and possibly beyond.
#Why Are Prices Increasing for These Models?
With the news of production halts, prices for these graphics cards have surged significantly. For instance, the cost of the RTX 5070 Ti has jumped from approximately $730 to $830 in the U.S., and from AU$1,200 to AU$1,400 in Australia. Similarly, the 5060 Ti 16GB has seen prices rise from $400 to as high as $530 for select models, driven by diminishing availability.
#What Factors Contributed to Nvidia's Decision?
Nvidia's choice to discontinue these models is primarily due to soaring VRAM costs and challenges within the supply chain. The company is shifting its focus toward lower VRAM 8GB models, such as the RTX 5060 and 5060 Ti 8GB. This move appears to be a strategic approach to maintain profit margins while dealing with the rising prices of GDDR7 memory.
#What About the RTX 5070?
The RTX 5070, which is equipped with 12GB of VRAM, remains in circulation but is also facing supply restrictions. Its pricing is on the rise, leading to a scarcity of available units at their manufacturer's suggested retail prices. As retailers anticipate a return to 8GB GPUs, many gamers might find their options becoming limited.
#What’s Happening with Competing Brands?
While Nvidia’s offerings are in a state of flux, Radeon cards, such as the RX 7900 XT, are also seeing price increases. Unlike Nvidia, AMD has not announced any end-of-life cuts on its models, which presents a unique opportunity for the brand to capture market share in the $500–$700 price range. The use of more affordable GDDR6 memory in RDNA4 cards may enable AMD to sustain its product supply as Nvidia restricts availability.
#Should Investors Watch These Developments?
Despite these shifts in Nvidia’s product lineup, analysts express skepticism regarding AMD's ability to leverage this situation fully. Concerns exist that AMD could mirror Nvidia’s strategy by withdrawing key models, which could ultimately restrict available choices for consumers and investors alike. Keeping an eye on these trends may provide insights into future opportunities in the graphics card and gaming markets.