By Muhammad Zuhair
Publication Date: 2026-02-26 08:08:00
NVIDIA has started to feel the aftermath of the ongoing DRAM shortages with its gaming business, as it witnesses a double-digit percentage QoQ decline, with supply remaining tight in the coming quarters.
NVIDIA’s Consumer GPU Business Is Suffering As Memory Allocation Becomes a Lot More Difficult
The consumer GPU industry is indeed in rough times, and with the start of this year, we have seen significant changes in the segment, including availability and launch plans. Memory shortages have intensified to the point that it has become difficult for companies to acquire supplies for their consumer products, and it appears that NVIDIA is facing similar troubles. In their Q4 2026 earnings, NVIDIA witnessed a 13% drop in quarterly revenue, and while the company attributes this to “inventory moderation”, the market suggests something else.
Fourth-quarter Gaming revenue was $3.7 billion, up 47% from a year ago, driven by strong Blackwell demand, and down 13% from the previous quarter as channel inventory naturally moderated following a season of strong holiday demand.
– NVIDIA
Interestingly, during the earnings call, NVIDIA was asked about what they expect from their gaming business moving forward, to which CFO Colette Kress disclosed that securing sufficient memory supply is currently off the books and that the upcoming quarters will be “very tight”. This implies that GPU shortages will become more aggressive moving forward, and given…
