Chipmaker Nvidia (NVDA) is not expected to release a new gaming chip in 2026, according to The Information, mainly due to a worsening global shortage of memory chips caused by the AI boom. If this happens, it would be the first time in about 30 years that Nvidia skips a calendar year without launching a new gaming GPU. Since memory is a key part of both gaming and AI chips, Nvidia is choosing to use its limited supply to meet the surging demand for AI servers instead. The company is also reducing production of its current GeForce RTX 50 lineup.
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It’s worth noting that Nvidia had originally planned to release an incremental update to its RTX 50 series this year, code-named Kicker, and the design was already finished. However, management decided in December to delay the update without setting a new timeline. That delay also pushes back the next-generation RTX 60 series, which was initially expected to enter mass production in late 2027. Nevertheless, Nvidia’s gaming business is still healthy.
Indeed, its most powerful gaming GPU, the RTX 5090, has been consistently sold out since its January 2025 launch, and competition from AMD (AMD) remains limited, as AMD is focusing more on midrange products. Financially, gaming has also become far less important to Nvidia, as it made up just 8% of revenue in the nine months to October, down sharply from 35% in 2022, while AI chips generate much higher margins. Importantly, the memory shortage is also affecting the wider tech industry, with Apple (AAPL) recently warning that rising memory costs could pressure future margins.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $260.06 per share implies 49% upside potential.
