Should I replace or upgrade?

It depends on your budget and games you want to play. Sadly, I don't believe this is some build that could run latest games, even under recommended settings. On the other hand, it's enough for games like PUBG Lite.

Well, thanks for your answer!

I disagree with shmekermeister i own an i7 860and even if it's quite old, paired with a R9 290X, it can still play recent games whith reasonable resolution and details. Even if it's bottelencking my GPU a bit. Your I5 2500 being more powerfull, it should be able to use all the power of an GTX 1650 or an RX 580 for $200. You can check on PC-builds calculator to have an idea of how much GPU power you can pair with it. https://pc-builds.com/calculator

Kenserky
I disagree with shmekermeister i own an i7 860and even if it's quite old, paired with a R9 290X, it can still play recent games whith reasonable resolution and details. Even if it's bottelencking my GPU a bit.

I have also rather old setup with i7 2600k and R9 290, and I've noticed that I can't cope that much with newer games. When I say newer, I am thinking about games like Metro Exodus, which recommends i7-4770k. I mean, it's not unplayable with your rig, you just need to be aware of that you are upgrading old system. And of course you will feel the boost if you go with new GPU, but don't expect miracles. Something similar I was thinking about, but I am not sure if I want to upgrade my 8.5 years old rig. I'll probably buy whole PC in the end.

shmekermeister
I have also rather old setup with i7 2600k and R9 290, and I've noticed that I can't cope that much with newer games. When I say newer, I am thinking about games like Metro Exodus, which recommends i7-4770k. I mean, it's not unplayable with your rig, you just need to be aware of that you are upgrading old system. And of course you will feel the boost if you go with new GPU, but don't expect miracles. Something similar I was thinking about, but I am not sure if I want to upgrade my 8.5 years old rig. I'll probably buy whole PC in the end.

That's right. For the upgrade / whole change part, it depends mostly of your wallet. I think a lot about it too and being short on money, I'll upgrade my rig over time. A big start with a B450 (or B550 if available) with 2*4Gb DDR4 at 3200MHz, an Athlon G3000 and a new 600W power supply silver / gold rated. And over time changing the CPU, add more RAM and finally replace the GPU.

Replace. No point throwing in something like a 1080 Ti or newer on a 2nd gen i5. You'll simply get bottlenecked by the CPU.