Nvidia warns of GPU shortage for the fourth quarter

Nvidia warned of a critical GPU shortage for the fourth quarter. Although there was a significant jump in the company’s third quarter revenues, supply problems are expected to leave their mark on the last period of the year. Nvidia’s Chief Financial Officer Colette Kress stated in a recent earnings call that they are forecasting a sequential decline in revenue due to supply constraints.

One of the main reasons for the expected GPU shortage is seen as Nvidia starting production preparations for the next generation RTX 50 series “Blackwell” graphics processors, which it plans to launch in 2025. This transition process, combined with increasing gaming and professional application demands, caused problems on the supply side. In addition, the company continues to strive to provide a balanced supply chain management for both players and corporate customers. However, it is stated that stocks will be limited in this period, especially in the high-end RTX 40 series models.

This development heralds a difficult period for players, especially during the end-of-year holiday season. In this period when the demand for high-end cards such as RTX 4080 and RTX 4090 is high, it is thought that there may be a serious supply shortage on the retail side. However, hardware demands continue to increase with gamers’ desire to play games at 4K resolution and take advantage of new AI-powered gaming features. In such an environment, GPU availability can become problematic for users, both in terms of prices and waiting times.

Even amid these challenges, Nvidia remains optimistic. The company expects a recovery on the supply side by increasing production capacity in early 2025. On the other hand, although experts see the balance that Nvidia is trying to establish between the gaming and corporate segments as a strategic success, they think that this situation may further increase supply problems in the short term. However, the decrease in demand for older generation GPUs with the launch of the RTX 50 series may alleviate the stock pressure somewhat.

Leadership in the artificial intelligence and gaming industry continues

Despite everything, Nvidia continues to consolidate its leading position in the gaming and artificial intelligence markets. The company’s GPUs play a key role in both the gaming ecosystem and the development of generative artificial intelligence technologies. But it seems likely that gamers will have trouble getting their hands on the GPUs they desire, especially during this quarter.

Finally, looking at Nvidia’s financial success, we see a 94% increase in third quarter revenues, reaching $35 billion, and a 109% increase in net income, reaching $19.3 billion. The company’s data center segment has driven much of this growth, with strong demand for GPUs like the H100 and H200.