Nvidia Plans Heavy Cuts to GPU Supply in Early 2026
hubie writes:
Nvidia reportedly plans 30-40% cut in GeForce GPU production in early 2026:
Recent reports have claimed that Nvidia intends to reduce its production capacity for GeForce RTX 50 series GPUs in the first half of 2026. These cuts are reportedly due to shortages of memory, not just GDDR7, but all memory types.
30-40% of Nvidia's GeForce GPU production could be axed. This implies that Nvidia cannot get enough GDDR7 memory to produce GPUs at its current rate. Alternatively, it implies that Nvidia expects significantly reduced GPU sales in 2026, possibly due to rising NAND and DRAM costs and their impact on PC prices.
Note that there is no mention of non-GeForce RTX PRO series GPUs. If GDDR7 memory supply is indeed limited, Nvidia may be allocating its limited memory stocks to its more profitable RTX PRO GPU lineup, sacrificing its GeForce lineup.
[...] Benchlife has claimed that Nvidia plans to start its cuts by targeting its RTX 5060 Ti 16GB and RTX 5070 Ti. Targeting the RTX 5060 Ti 16GB makes sense, as this GPU has the same amount of memory as an RTX 5080, a much more expensive GPU. The same is true for the RTX 5070 Ti. It's memory could also be used for more profitable RTX 5080 GPUs.
If this is true, Nvidia wants to allocate its memory to its most profitable products. This makes sense from a business perspective. However, this tactic will hit consumers hard. Nvidia's RTX 5060 Ti 16GB is a much better product than its 8GB counterpart. Why? It has enough VRAM to run modern games without compromises. Nvidia's shift in production will force more consumers to purchase their 8GB GPU models.
[...] DDR5 memory prices are already through the roof, and it's likely that these price increases will soon impact the GPU market. Manufacturers will prioritise GPUs with lower memory and higher-margin models with more memory. That's bad news for gamers who want graphics cards with plenty of VRAM.
With Nvidia reportedly reducing its GPU production, one has to wonder whether this will cause a GPU shortage and drive up GPU prices.
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