Nvidia Warns Gaming Chip Shortage to Persist Through End of 2026
Nvidia has warned that the shortage of chips used in personal computers and gaming consoles could continue until the end of 2026, underscoring mounting challenges facing the global video games industry.
According to Reuters, the company said supply constraints are expected to weigh on its gaming business in the current quarter and beyond, despite sustained demand for its products. Nvidia’s Chief Financial Officer, Colette Kress, noted that the current imbalance between supply and demand is likely to persist for several quarters, adding that it is too early to anticipate a meaningful recovery in chip availability before year-end.
The broader technology sector is experiencing unprecedented pressure amid the race to expand artificial intelligence capabilities. Surging demand for AI-related hardware has pushed memory chip demand beyond available supply, driving up prices and prompting manufacturers to prioritize high-margin data center chips over consumer-focused components.
This strategic shift has reduced the allocation of chips for devices such as smartphones, personal computers, and gaming consoles, tightening supply across the consumer electronics market.
Nvidia’s graphics processing units are widely used in PC gaming and power devices such as the Nintendo Switch. Meanwhile, rival chipmaker AMD supplies processors for consoles including Sony’s PlayStation and Microsoft’s Xbox platforms.
Industry forecasts suggest that the home video game hardware market could contract by 4.4% this year, compared with earlier projections of a 3.5% decline, reflecting the combined impact of constrained supply and softer consumer spending.
The warning comes at a critical time for electronics manufacturers seeking to balance rising AI-driven demand with ongoing component shortages. Persistent supply limitations could further slow growth in the gaming sector and force companies to carefully manage limited resources to maintain operational continuity.