Nvidia warns gamers of an incoming GPU shortage

By Kunal Khullar Published November 21, 2024

The RTX 4090 sitting alongside the Fractal Terra case. — Jacob Roach / Digital Trends

Get ready for yet another GPU shortage, as Nvidia has warned about potential shortages in the current quarter. Although the company’s third-quarter revenue saw a healthy growth, in its recent earnings call, company Chief Financial Officer Colette Kress said that the fourth-quarter revenue is expected to decline sequentially due to supply constraints.

The anticipated GPU shortage could potentially stem from a strategic shift in production to prepare for the next-generation RTX 50-series “Blackwell” GPUs, slated for release in 2025. This supply transition, coupled with surging gaming and professional use-case demand, seems to have left the company in a tight spot. Nvidia acknowledged its struggle to maintain stock for both gamers and enterprise customers, emphasizing its ongoing efforts to expand manufacturing capacity.

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For gamers, this warning means longer wait times and potential price surges for Nvidia’s GPUs during the holiday season. Retailers may face limited inventory of RTX 40-series models, especially premium cards like the RTX 4080 and RTX 4090. This challenge arrives as gamers increasingly seek powerful hardware for 4K gaming and emerging AI-enhanced features, making GPU availability crucial.

Nvidia remains optimistic about a recovery though, projecting improved supply by early 2025 as production ramps up. Analysts note that the company’s dual strategy — balancing gaming and enterprise segments — has proven profitable but may exacerbate short-term shortages. Additionally, the ramp-up to the RTX 50-series could generate renewed interest among gamers, potentially easing pressure on older product lines.

Despite these challenges, Nvidia continues to solidify its leadership in both gaming and AI markets. The company’s GPUs remain a cornerstone of the gaming ecosystem and the driving force behind advancements in generative AI technologies. However, gamers should brace for a challenging quarter in obtaining sought-after GPUs until supply levels stabilize.

On the positive side, Nvidia’s third-quarter revenue surged 94% year-over-year to $35 billion, with net income rising 109% to $19.3 billion. The data center segment drove this growth, contributing $30.7 billion (87.7% of total revenue), fueled by strong demand for H100/H200 and upcoming Blackwell GPUs.

Former Computing Writer

Kunal Khullar is a computing writer at Digital Trends who contributes to various topics, including CPUs, GPUs, monitors, and…

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