NVIDIA GeForce RTX 40 GPUs: Potential Global Shortage Looms

NVIDIA’s GeForce RTX 40 GPU Supply Faces Potential Shortage Amid AI Demand Surge

NVIDIA’s GeForce RTX 40 “Ada” GPU lineup is facing a potential shortage in mainstream markets as suppliers shift focus to meet the massive demand for AI technology. This shift has led to concerns about the availability of popular models like the GeForce RTX 4070 and RTX 4060 series.

Supply Chain Constraints and Market Impact

Supply chain sources report that NVIDIA’s Ada Lovelace SKUs within the GeForce RTX 40 GPU family could face a market shortage as soon as next month. Production lines have been “strictly” confined, resulting in a supply drop of up to 50%. The GeForce RTX 4070 and 4060 series are expected to be the most affected.

Reasons Behind the Shortage

Various sources offer different explanations for the shortage. Taiwanese media outlets suggest that NVIDIA is focusing on its AI supply chain in anticipation of the Blackwell lineup. Suppliers like TSMC have shifted production facilities to cater to the AI hype, causing a drop in supply levels for NVIDIA’s Ada Lovelace GPUs. This “crowding effect” within the supply chain has led to a compromise in consumer-level products.

Another claim from sources in Asia, notably BoardChannels via Harukaze5719, indicates that a drop in GDDR6X supply from memory manufacturers has impacted consumer GPUs. A previous batch of GDDR6X received by NVIDIA had “quality control problems,” creating a bottleneck in the supply chain. However, this issue is reportedly short-lived, with NVIDIA already addressing it.

Market Reactions and Price Increases

UDN reports that the GeForce RTX 4060 series, including the 4060 Ti and 4060, is already tight in supply and experiencing widespread price increases. This trend has extended to higher-end cards like the RTX 4090, RTX 4080, and RTX 4070. The reduction in supply aims to avoid excessive inventory outflows ahead of the next-generation GPU launch, the RTX 50 series. NVIDIA and its partners faced significant challenges with past RTX 30 “Ampere” inventories.

Current Market Share and Future Outlook

According to Steam’s Hardware Survey, NVIDIA’s GeForce RTX 40 “Ada” GPUs hold a 21.3% market share, while RTX 30 “Ampere” GPUs make up 32.7%. The older Turing “GeForce RTX 20” GPUs account for 22.2%, including a 12% share of the GTX 16 series, popular among budget gamers.

Despite varying narratives, it is evident that NVIDIA’s Ada Lovelace SKUs are seeing a drop in supply. With the upcoming RTX 50 series release and declining consumer interest in the RTX 40 “Ada” series, it is justifiable for NVIDIA to reduce production. A temporary price bump for existing RTX 40 GPUs is possible, but this remains uncertain.

Stay tuned for more updates on the evolving GPU market and NVIDIA’s strategies to navigate these challenges.