This article first appeared on GuruFocus.
Intel (NASDAQ:INTC) is facing higher graphics-card prices as memory costs feed into the pricing of its Arc Pro B70 workstation GPU, according to a Wednesday analyst note from Wedbush Securities.
The B70 has become more expensive across several markets over the past month. Wedbush analyst Matt Bryson cited a 30% increase in the U.S., with the ASRock Creator version rising to $1,299 from $999, while prices climbed 26% in Germany and 46% in South Korea.
Bryson said the price changes point to memory-cost increases being passed through to customers. The B70 includes 32GB of GDDR6 ECC memory, which may make it suitable for AI inference workloads.
In South Korea, the card’s price increased from about 1.89 million won on July 21 to nearly 2.8 million won by Aug. 16. Intel’s own listed price has since reached about 2.82 million won.
The pricing trend could have mixed implications for Intel. Higher GPU prices may support revenue per unit, but rising memory expenses could also pressure demand and margins if costs remain elevated.
Higher GPU pricing may offer some revenue support, but investors will likely watch whether memory inflation weighs on margins.