NVIDIA Cuts RTX 40 Supply Ahead of RTX 50 "Blackwell" Launch

As NVIDIA prepares for the launch of its new GeForce RTX 50 "Blackwell" series of gaming GPUs, the market is witnessing a strategic shift. Reports indicate that NVIDIA plans to reduce the supply of its current RTX 40 GPUs based on the Ada Lovelace architecture, leading to price reductions in regions like Korea and the APAC.

In the USA, the flagship RTX 4090 GPU's price has already fallen below $2000, after remaining above this mark due to high demand. The reduction in supply and the upcoming release of the RTX 50 series are expected to accelerate price drops, particularly for the higher-end models of the RTX 40 line.

In terms of business strategy, NVIDIA will focus on producing high-performance AI GPUs such as the H100 and the upcoming Blackwell B200/B100 models, ensuring high profitability. These products utilize the same TSMC 4N manufacturing process as the RTX 40 GPUs.

Therefore, NVIDIA's decision to limit the supply of RTX 40 GPUs not only paves the way for the next-generation RTX 50 but also allows the company to concentrate on the more lucrative AI market segment, while maintaining price stability for the existing gaming models.