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Nvidia warns gamers of an incoming GPU shortage

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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.

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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.

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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.

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Kunal Khullar
Kunal Khullar
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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