Core Viewpoint - NVIDIA plans to significantly reduce the production of its GeForce RTX 50 series graphics cards by 30%-40% in the first half of 2026, primarily affecting the RTX 5060 Ti 16GB and RTX 5070 Ti models, which may lead to a shortage and price increase for consumers [1][6][10] Group 1: Production Cuts - NVIDIA's decision to cut production is driven by a shortage of memory, particularly GDDR7, which limits the company's ability to produce at full capacity [4] - The company is prioritizing high-profit models over mid-range options, as it aims to allocate limited memory resources to more profitable RTX PRO series and high-end consumer cards [8] Group 2: Consumer Impact - Consumers may face a choice between lower-spec 8GB graphics cards or higher-priced models due to the reduced availability of 16GB options [2][9] - The anticipated rise in NAND and DRAM memory costs could further increase overall system prices, leading to potential hesitance among consumers to purchase new GPUs [5] Group 3: Market Reactions - The news of production cuts has sparked significant reactions from the gaming community, with some users expressing frustration and suggesting that competitors like AMD and Intel could benefit from NVIDIA's decision [3][11] - There is a growing concern that the price of GDDR5 memory is already rising, which, combined with the GPU supply cuts, could result in a dual impact of shortages and price hikes in 2026 [10]

Core Viewpoint - NVIDIA plans to significantly reduce the production of its GeForce RTX 50 series graphics cards by 30%-40% in the first half of 2026, prioritizing high-profit models over mid-range options [1]. Group 1: Production Cuts and Market Impact - The reduction in production will primarily affect the RTX 5060 Ti 16GB and RTX 5070 Ti models, which are popular among mid-range gamers [6]. - Consumers may face a choice between lower-spec 8GB graphics cards or higher-priced models due to the limited availability of 16GB options [9]. - The anticipated increase in NAND and DRAM memory costs could lead to higher overall prices for gaming systems, potentially discouraging consumer purchases [5]. Group 2: Supply Chain Challenges - A shortage of memory, particularly GDDR7, is contributing to the production cuts, as NVIDIA cannot produce at full capacity without sufficient memory supply [4]. - The price of GDDR5 memory has already begun to rise, which, combined with reduced GPU production, may result in a dual impact of shortages and price increases in the GPU market by 2026 [10]. Group 3: Competitive Landscape - The situation has prompted discussions among consumers about switching to AMD as a potential alternative, indicating a shift in competitive dynamics within the GPU market [11].