Potential Market Shortage for NVIDIA Gaming GPUs in Q1 2024
Recent reports suggest a significant decline in the availability of NVIDIA’s gaming GPUs worldwide, raising concerns about a potential market shortage.
Studies indicate that NVIDIA GPUs have been increasingly difficult to procure in various markets. While the supply remained stable from 2022 to 2023, recent industry sources highlight a notable decrease in global volumes, hinting at a shift in the market dynamics.
According to MyDrivers, NVIDIA’s client Nvidia has observed dwindling availability in markets as they enter Q4 2023, particularly noted by Chinese industry insiders. Although specific SKUs facing shortages are not specified, it is believed that the entire RTX 40 series has encountered a reduction in stock, impacting Chinese markets significantly. The introduction of the “cut-down Nvidia RTX 4090D” has further fueled demand, with consumers rushing to secure the GPU to avoid missing out. Platforms like JD.com have already witnessed an uptick in the pricing of NVIDIA’s Ada Lovelace GPUs.
The supply constraints are not confined to local markets alone, as reports indicate dwindling NVIDIA GPU stocks in regions like the US and Europe. If the current trend persists, it is anticipated that prices may surge. For instance, the flagship Ada GPU, GeForce RTX 4090, is notably absent from major online retailers such as Amazon and Best Buy, with resale prices on platforms like eBay surpassing the $1599 US MSRP. This scarcity extends to other products within NVIDIA’s portfolio as well.
While the root cause of the supply crunch remains undisclosed, speculations suggest that NVIDIA might have scaled back the production of consumer GPUs to focus on capitalizing on AI accelerators designed for their data center segment.
NVIDIA’s strategic shift towards prioritizing AI-centric products over gaming GPUs aligns with their pursuit of lucrative opportunities. While it is premature to draw definitive conclusions, concerns linger about a potential resurgence of cryptocurrency-related shortages, especially at a time when the PC market is gradually recovering from a sluggish phase.
