For the first time ever, Nvidia $NVDA ( ▼ 1.33% ) is reportedly hitting pause on a new gaming graphics card launch this year. Instead of rolling out the next must-have GPU, the chip giant is said to be cutting production of its current gaming lineup as memory shortages squeeze the entire semiconductor supply chain.
The reason is simple: AI is hogging the chips.
AI eats first
High-bandwidth memory and other advanced components are in short supply as data center and AI hardware demand soars. That is pushing chipmakers to prioritize the far more profitable AI market over consumer gaming hardware.
Micron $MU already signaled where things are headed, announcing plans to exit parts of the consumer memory business. When the same memory used in gaming gear can be sold into AI servers at higher margins, the math becomes obvious.
Gamers feel the squeeze
This is not just Nvidia’s problem. Valve said it is delaying the launch of its upcoming Steam Machine console because rising memory and storage costs blew up its original pricing and timeline. Nintendo $NTDOY ( ▼ 8.18% ) and Sony $SONY ( ▼ 3.06% ) have also warned that higher memory prices could pressure profits and potentially affect console sales.
In short, the AI boom is quietly taxing gamers. Fewer new GPUs, tighter supply, and higher component costs could make upgrading your rig — or buying a new console — even more expensive in the months ahead.