Get ready for another potential GPU shortage, as Nvidia has issued a warning about possible supply issues in the upcoming quarter. Despite the company experiencing a robust increase in third-quarter revenue, Chief Financial Officer Colette Kress indicated during a recent earnings call that fourth-quarter revenue is anticipated to decrease due to production limitations.
This impending GPU scarcity could be linked to Nvidia’s strategic shift in manufacturing aimed at preparing for the forthcoming RTX 50-series “Blackwell” GPUs, which are expected to launch in 2025. The transition in supply chains, alongside a spike in demand for gaming and professional applications, has placed Nvidia in a difficult position. The company has acknowledged its challenges in maintaining adequate stock for both gamers and business clients and has highlighted its ongoing initiatives to increase production capacity.
For gamers, this forecast implies longer delays and possible price increases for Nvidia’s GPUs as the holiday season approaches. Retailers may find themselves with limited supplies of RTX 40-series models, particularly the higher-end RTX 4080 and RTX 4090 cards. This situation arises as gamers increasingly seek enhanced hardware for 4K gaming and the latest AI features, making GPU availability essential.
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Nvidia remains hopeful for a recovery, predicting an improvement in supply by early 2025 as production accelerates. Analysts point out that the company’s strategy of balancing its gaming and enterprise divisions has proven lucrative but may intensify short-term supply shortages. Additionally, the buildup to the RTX 50-series could rekindle interest among gamers, possibly alleviating the strain on previous product lines.
Even with the challenges ahead, Nvidia is firmly establishing its dominance in both gaming and AI sectors. The company’s GPUs are fundamental to the gaming landscape and drive significant advancements in generative AI technologies. Nevertheless, gamers should prepare for a tough quarter in securing desirable GPUs until supply levels stabilize.
On a brighter note, Nvidia’s third-quarter revenue saw a remarkable 94% year-over-year growth, totaling $35 billion, with net income climbing 109% to $19.3 billion. The data center segment was the primary contributor to this growth, accounting for $30.7 billion (87.7% of total revenue), driven by strong demand for the H100/H200 and forthcoming Blackwell GPUs.
