NVIDIA has announced that its upcoming RTX 5090 and 5080 graphics cards will face significant supply constraints at launch. The company’s CFO has warned of a GPU supply-demand mismatch extending into early 2025.
Why it matters: The shortage of NVIDIA’s next-generation graphics cards fundamentally impacts the gaming and content creation markets, potentially leading to price increases and limited availability during a crucial launch window.
Supply Constraints: NVIDIA attributes the shortage to multiple factors affecting production and distribution. Board partners like MSI report receiving insufficient GPU core allocations, leading to severely limited retail quantities.
- Production capacity prioritized for data centers
- Limited GPU core allocation to partners
- Supply chain communication issues
Market Impact: The supply constraints have already affected the retail landscape:
- Single-digit quantities at major retailers
- Scalper pre-orders reaching $7,000
- Price inflation across regions
Manufacturer Response: “We’re seeing unprecedented demand for our next-generation GPUs, significantly exceeding our initial production capacity,” says Colette Kress, NVIDIA CFO.
Looking Forward: While NVIDIA expects supply to improve by February, the company acknowledges that meeting initial demand will be challenging as production normalizes.
