**NVIDIA GPU Shortage Potential**


NVIDIA has issued a warning regarding the potential for a GPU shortage in the near future. This shortage could lead to increased prices for current stock and pose significant challenges for gamers seeking to upgrade their GPUs with the upcoming generation.


Recall the GPU shortage that occurred a few years ago, which resulted in substantial price increases and heightened demand. Finding GPUs at their manufacturer’s suggested retail price (MSRP) became virtually impossible. Scalpers exploited the shortage, stockpiling large quantities of graphics cards and charging exorbitant prices, often two or three times the MSRP.


During this period, gamers faced two primary options: paying inflated prices or waiting for increased stock availability. Unfortunately, there was no guarantee of securing a GPU, and even those who waited faced uncertainty. The restocking process was chaotic, with companies adopting varying strategies.


While it is uncertain whether the situation will escalate to the same extent with NVIDIA GPUs, there are indications that supply may be limited for the company’s next-generation cards, scheduled for release in 2025. This could be attributed to NVIDIA designating a significant portion of the Blackwell GPUs to companies requiring GPUs capable of powering high-performance AI applications.


Despite NVIDIA’s warnings, it is prudent to prepare for the potential shortage. As Digital Trends points out, NVIDIA has cautioned gamers that fourth-quarter revenue may decline due to supply constraints. This follows a relatively positive growth in revenue during the third quarter.


**Key Points:**


**Supply Constraints:** NVIDIA anticipates a lower supply of its 50-series GPUs compared to the 40-series GPUs currently available. This situation, coupled with the demand from gamers and enterprises seeking NVIDIA’s new powerful option, may lead to price adjustments for current-generation stock. The upcoming holiday season further intensifies the pressure on prices.


**Potential Price Increases:**


While some 50-series GPUs are currently available at reasonable prices, their availability may diminish. There is no guarantee that price increases will be limited to NVIDIA’s Founders Edition models, as they have been affected since the 30-series.


**Shortage Duration:**


A shortage can be mitigated by maintaining patience. If individuals endure the wait, they can acquire a new GPU without incurring excessive costs. NVIDIA has indicated that the shortage may not persist, with production expected to ramp up in early 2025. This anticipated increase in production should lead to a decline in GPU prices if they have experienced significant surges.


**Impact on Older GPUs:**


An anticipated increase in 50-series GPU production in early 2025 is expected to result in a decrease in prices for 40-series GPUs. This scenario assumes a substantial price increase for 40-series GPUs. Regardless of the actual price trajectory, it is advisable to plan for GPU acquisition now if an upgrade is imminent. Alternatively, purchasing during the current reasonable price period may be prudent to avoid potential price hikes in the future.