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Nvidia expects ongoing product shortages due to high demand
Tuesday, March 17, 2026 at 03:32 AM
Nvidia is projecting continued supply shortages for its AI products despite attempts to scale production capacity.
Context
In a March 2026 update, Nvidia CEO Jensen Huang confirmed that the company expects ongoing product shortages for the foreseeable future due to unprecedented demand for AI infrastructure. The scarcity is most acute for the Blackwell GPU architecture, which features over 204 billion transistors and carries a price tag between $30,000 and $40,000 per unit. Despite record-breaking data center revenue of $62.3 billion in the most recent fiscal quarter, Nvidia admits that supply remains the primary ceiling on growth.
Structural bottlenecks in the supply chain, specifically TSMC’s oversubscribed CoWoS packaging capacity and a global deficit of HBM3E memory, are expected to persist into 2027. This shortage has forced Nvidia to prioritize enterprise AI clients over its gaming segment, leading to price hikes of $200 to $500 above MSRP for consumer cards like the RTX 5080. Meanwhile, hyperscalers like ByteDance are utilizing creative workarounds, such as a 36,000 Blackwell GPU cluster hosted in Malaysia, to navigate export controls and supply constraints.
Sources (8)
Nvidia Ranks Last on AI Supply Chain Decarbonization, Greenpeace Report Finds - Greenpeace East Asia
Nvidia shift, AI chip shortages threatening to hike gadget prices - CNBCChina's ByteDance to access 36,000 Blackwell GPU cluster through Malaysia cloud operator — Nvidia confirms no objections, deal is in line with US export controls | Tom's Hardware[News] NVIDIA May Relax HBM4 Specs as Samsung and SK hynix Reportedly Face Capacity, Yield LimitsAI Capacity Constraints - CoWoS and HBM Supply ChainNvidia Warns of 'Very Tight' GPU Supplies for at Least Next 2 Quarters | PCMagNvidia's Blackwell GPU sales are “off the charts” according to CEO ...Inside the AI Bottleneck: CoWoS, HBM, and 2–3nm Capacity Constraints Through 2027
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