The rapid development of artificial intelligence has brought more trouble to PC assemblers than expected. It has not only caused DDR5 memory prices to soar but has also triggered a new round of GPU shortages.
Driven by surging demand from AI-powered data centers, Nvidia is reportedly cutting RTX 50 series GPU production by 15% to 20% until at least the third quarter of 2026.
RTX 50 series graphics cards
Reports indicate that this production cut will affect all RTX 50 series graphics cards, including the flagship RTX 5090, making its supply even scarcer than before. Production of the RTX 5070 Ti will drop significantly, while the RTX 5080 and RTX 5060 Ti 8GB will continue to be available in limited quantities. The RTX 5060, one of the most affordable models in the series, is expected to be discontinued entirely.
According to the YouTube channel "Moore's Law Is Dead," citing anonymous sources, Nvidia has stopped producing consumer-grade graphics cards due to "severe oversupply of artificial intelligence products." A distributor reportedly confirmed that the RTX 5060 will be discontinued for at least six months, while the RTX 5090, RTX 5070 Ti, and RTX 5060 Ti 16GB will be virtually "unavailable" for some time.
Another source (reportedly a major retailer) appears to confirm the graphics card shortage, stating that the supply of the RTX 5060 is about to run out and will not be restored until at least the fourth quarter. They added that the 5050 and 5060 Ti 8GB will be the only models available in relatively large quantities and at reasonable prices throughout the summer. The 5080 and 5070 will also continue to be sold, but in very limited quantities.
Nvidia has reportedly notified its motherboard partners, distributors, and retailers that it will reassess its strategy in the fourth quarter. However, this doesn't mean production will return to normal anytime soon, so graphics card supply is likely to remain a major challenge for gamers and professionals for the foreseeable future.
About memory shortage
Last year's memory shortage has now spread to other areas of the PC hardware market, including solid-state drives (SSDs), hard disk drives (HDDs), and graphics cards. ASUS previously announced it would discontinue production of its RTX 5070 Ti graphics card, but withdrew the statement after Nvidia assured it would continue supplying its motherboard partners.
The soaring DRAM prices are also impacting the broader consumer electronics market, with smartphone prices expected to rise this year. A recent IDC report indicates that if the DRAM shortage continues, PC and smartphone prices could increase by nearly 10% by 2026.
Source: Compiled from TechSpot
