Nvidia has warned that there could be a lack of GPUs this quarter, so get ready for another one. The company’s revenue grew nicely in the third quarter, but on its most recent results call, Chief Financial Officer Colette Kress said that the company’s revenue in the fourth quarter is likely to go down because of supply issues.
The expected shortage of GPUs could be caused by a change in production strategy to get ready for the next generation of GPUs, the RTX 50-series “Blackwell” GPUs, which are set to come out in 2025. The company seems to be in a tough spot because of this change in supply and the rising demand for gaming and business use cases. Nvidia admitted that it was hard to keep enough stock for both gamers and business users, and it emphasized that it was still working to increase its manufacturing capacity.
This notice means that gamers will have to wait longer for Nvidia’s GPUs and the prices may go up during the Christmas season. There may not be a lot of RTX 40-series models in stores, especially high-end cards like the RTX 4080 and RTX 4090. This problem arises because players want more powerful hardware for 4K games and new AI-enhanced features, making GPU availability very important.
Nvidia is still hopeful about a recovery, though, and thinks that supply will be better by early 2025 as production increases. Analysts say that the company’s strategy of balancing the gaming and business segments has paid off, but it may make shortages worse in the short term. The release of the RTX 50-series could also get gamers interested again, which could make older product lines less stressed.
Despite these problems, Nvidia is still a leader in both the game and AI markets. The company’s GPUs are still an important part of the gaming environment and are a big reason why generative AI technologies are improving. But gamers should be ready for a tough quarter getting the GPUs they want until supply levels level off.
On the bright side, Nvidia’s net income rose 109% to $19.3 billion and its sales jumped 94% year-over-year to $35 billion. This growth was led by the data center sector, which brought in $30.7 billion, or 87.7% of the total revenue. This was due to high demand for the H100/H200 and the new Blackwell GPUs.