A looming shortage of DRAM memory is forcing leading graphics card manufacturer NVIDIA to scale back production of its GeForce RTX 5000 series,a move with potential ripple effects throughout the consumer electronics market. The cuts, reportedly ranging from 30 to 40 percent in the first half of 2026, are a direct response to surging demand for memory from the burgeoning artificial intelligence sector [[1]]. This prioritization of AI hardware could lead to constrained supply and increased prices for gamers and everyday consumers alike.
A global shortage of DRAM is prompting NVIDIA to reportedly scale back production of its GeForce RTX graphics cards. The move underscores the increasing demand for memory driven by the rapid expansion of artificial intelligence computing.
According to reports from Board Channels and Benchlife, NVIDIA plans to cut GeForce RTX 5000 series production by 30 to 40 percent in the first half of 2026. The NVIDIA GeForce RTX 5060 Ti 16 GB and GeForce RTX 5070 Ti, positioned as the company’s more affordable cards with 16 GB of graphics memory, are expected to be most affected by the production adjustments.
NVIDIA intends to reallocate its available production capacity to focus on higher-margin GPU server and AI products. This strategic shift reflects the current market dynamics, where demand for AI-focused hardware is significantly outpacing that of consumer graphics cards.
The company anticipates lower demand for gaming graphics cards in 2026 due to a lack of new product releases. However, the reduced production volume is expected to create limited stock availability, potentially driving up prices. This could lead to a resurgence of GPU shortages and price increases similar to those experienced in 2020.
The DRAM shortage, largely attributed to demand from companies like OpenAI, is predicted to worsen throughout 2026. Analysts suggest laptop prices could increase by around 20 percent, with more devices featuring only 8 GB of RAM. Similarly, smartphones with 4 GB of RAM may become more prevalent in the market. Even gaming consoles like the Nintendo Switch 2 and Steam Machine could see price increases due to the rising cost of DRAM.
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