Two major AI chip giants prepare for the worse ahead of Trump’s tariffs

Nvidia and AMD are strategizing ahead of Trump’s tariffs against trade partners, including China, Mexico, and Canada, pushing America toward a trade war.

According to a recent report by The Street, Nvidia and AMD are speeding up the launch of their new GPUs, hoping to get them out in time for President Trump’s inauguration on January 20th. The aim is to spare the higher costs that could stem from a 60% tariff on Chinese imports. In turn, the production expenses and consumer prices of GPUs would go up significantly.

Trump will officially announce his plans in a few weeks. However, his plans have already begun impacting how American tech does business. Tech companies are trying to hedge their risk from heavy tariffs promised on trade partners such as China, Canada, and Mexico.

In his first term, Trump’s tariffs engendered a trade war, and companies are no longer looking to see if history will repeat itself.  Nvidia and AMD are particularly vulnerable, relying on Chinese firms for chip assembly and testing.

Tech blog Wccftech and a Chinese news site confirm that partners are ramping up production of add-in boards for Nvidia and AMD. They hope such acceleration will lock in profits before tariffs make GPUs even pricier.

Nvidia GeForce RTX 5090 may go from $1,799 to $2,500, impacting Silicon Valley’s AI boom

These GPUs are key to the AI revolution, a sector already under pressure because of potential supply chain constraints.

Nvidia’s flagship GPUs, which aren’t cheap to begin with, will become even more expensive due to anticipated tariffs. According to Wccftech, the Nvidia GeForce RTX 5090 may go from $1,799 to $2,500.

Price hikes like this could radically alter the GPU market, increasing second-hand GPU demand and potentially opening the door for rivals. Leading tech companies like Google and Amazon are also exploring in-house AI chips to reduce reliance on Nvidia and AMD.

AI and the tech industry are preparing for the worst

Nvidia and AMD aren’t the only ones preparing for the worst. Dell and HP have also urged suppliers to step up production. Microsoft is also following the same strategy. Meanwhile, China suggests it may retaliate by scrutinizing U.S. tech firms.

The looming tariffs could disrupt supply chains, increase costs, and change Silicon Valley’s AI boom. Nvidia and AMD’s strategic pivot is just one of many moves by tech giants to prepare for what could be a bumpy economic turn.

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