Nvidia (NVDA) may significantly scale back production of its advanced GeForce RTX 50‑series GPUs in early 2026. The company is reportedly preparing to reduce output by 30% to 40% as global memory shortages tighten and demand patterns shift across the PC hardware market. The news was reported by Benchlife. NVDA stock is down about 4% in Wednesday’s regular trading session.
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The potential cuts would affect Nvidia’s consumer-focused Blackwell gaming lineup during the first half of 2026. This marks one of the major supply adjustments the company has considered in recent years.
The earliest cuts are expected to target mid-range models such as the RTX 5070 Ti and RTX 5060 Ti 16GB, which use the same memory capacity as higher-end cards but generate lower margins for Nvidia and its partners.
Memory Shortages Are the Main Pressure Point
The move is reportedly tied to a broad shortage of memory components, including GDDR7, GDDR6, and even motherboard-related memory like DDR5, which is squeezing GPU production capacity across the board.
Reports suggest Nvidia may prioritize its higher-margin professional GPUs if memory remains constrained, leaving fewer components available for consumer graphics cards.
The shortage is already affecting pricing across the PC ecosystem, with rising NAND and DRAM costs expected to push overall PC prices higher in 2026.
Is NVDA a Strong Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, one Hold, and one Sell assigned in the past three months. Further, the average Nvidia price target of $258.97 per share implies 51.57% upside potential.
