Nvidia plans to slash RTX 50 GPU production by up to 40% as memory shortage bites

Nvidia could slash GeForce RTX 50 production by up to 40% next year

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. Rumor mill: Analysts and other sources anticipate that memory shortages stemming from the AI boom could disrupt supplies of numerous hardware products beginning next year. AMD is expected to introduce modest GPU price hikes, while Nvidia may significantly reduce production of certain graphics card models. According to unconfirmed reports from Board Channels, Nvidia is considering cutting production of RTX 50 series GPUs by 30 to 40% during the first half of 2026. The decision is likely driven by memory shortages, which could make some cards nearly as difficult to find as they were at launch. Another outlet, Benchlife, partially corroborated this information. Although it did not specify the scale of the adjustments, its sources claim the cuts would target the RTX 5070 Ti and 5060 Ti. It's also worth noting that both rumors originate from Asian sources, which may not necessarily reflect global market conditions and could be limited primarily to mainland China. If accurate, these reports would align with earlier rumors that AMD and Nvidia might discontinue some budget and mid-range graphics cards due to VRAM shortages. Memory accounts for a large portion of the bill of materials for lower-priced GPUs, and both the RTX 5070 Ti and 5060 Ti are 16GB cards. Nvidia's decision to use cutting-edge GDDR7 memory for the RTX 50 series contributed to supply constraints and inflated prices at launch in early 2025. Although the GPUs are currently available at relatively low prices, availability is expected to worsen next year - making this holiday season a good time to upgrade. Driven by AI demand, planned data centers have absorbed most of the backlogged DRAM and NAND from manufacturers such as Samsung and SK Hynix, with shortages projected to last through 2027 or 2028. As a result, upcoming smartphones and laptops may ship with less RAM than previous models, the Nintendo Switch 2 could see a price increase, and Micron/Crucial has exited the consumer RAM business after three decades. In the graphics card market, AMD is expected to pass higher memory costs on to consumers, possibly beginning in January. Additionally, Nvidia may delay or even cancel the RTX 50 Super series, which was expected to launch in 2026 with 18GB of VRAM for the RTX 5070 and 24GB for the 5070 Ti and 5080.

Nvidia's GeForce RTX 50 Series GPUs Are About to Be Scarce

* Nvidia will reportedly reduce supply by 30-40 percent YoY in H1 2026 * GeForce RTX 5070 Ti and 5060 Ti 16GB GDDR7 are said to be affected first * Nvidia has not confirmed the production cuts officially Nvidia is reportedly preparing to reduce production of its GeForce RTX 50 series graphics cards by as much as 30 to 40 percent in early 2026 due to ongoing memory shortages. As per the report, the first GPU products that will be affected by this adjustment are GeForce RTX 5070 Ti and GeForce RTX 5060 Ti 16GB GDDR7, as the RAM shortage has particularly affected the GDDR6 or GDDR7 variants. Earlier, a report claimed that the shortage could also result in smartphone brands not bringing the 16GB RAM variant to the market in 2026. Nvidia to Reportedly Reduce Production of GeForce RTX 5070 Ti, 5060 Ti According to China's BoBantang (via Benchlife), Nvidia has told its suppliers to cut down the production of the GeForce RTX 50 series GPUs by 30 to 40 percent in the first half of 2026 compared to the same period in the ongoing year. The report also claims that the chipmaker has not yet informed its third-party customers about a price hike for the consumer products, but it might be close to doing so. The report suggests that Nvidia's planned cuts are linked to shortages across multiple memory segments, including GDDR7 and broader VRAM supply, pressing it to adjust how it allocates memory chips among its GPU product stacks. Nvidia might be favouring higher-margin and enterprise-focused GPUs over the affordable consumer-focused products. Notably, the RTX 50 lineup is Nvidia's flagship consumer GPU series based on the Blackwell chipset. The lineup includes a range of graphics cards, from mid-tier models RTX 5060 Ti and RTX 5070 Ti to higher-end models, such as the RTX 5080 and RTX 5090. The report specifically mentioned the RTX 5070 Ti and the 16GB version of the RTX 5060 Ti as among the first cards that could see reduced supply in 2026 if the claimed plan goes ahead. A major reason behind the global RAM shortage is said to be the rapid expansion of AI data centres, which are consuming far larger volumes of high-performance memory than traditional consumer hardware. Chipmakers have reportedly increasingly prioritised the data-centre-grade products for AI companies, as they command higher margins. As a result, capacity that would typically go toward consumer graphics cards and PCs has been redirected toward enterprise and AI customers. Memory suppliers such as Samsung, SK Hynix and Micron have publicly highlighted strong demand from AI accelerators, which has reshaped production planning across the industry.