NVIDIA Stock Drops Amid GPU Production Cuts, Potential Ripple Effects on Crypto Mining Hardware
NVIDIA shares fell 3.4% to $171.67 following supply chain reports of significant production cuts for its upcoming RTX 50 series GPUs. Memory shortages affecting GDDR6 and GDDR7 chips may reduce output by 30-40% in early 2026, particularly impacting midrange models like the RTX 5070 Ti and RTX 5060 Ti 16GB.
The constraints stem from a perfect storm of DRAM wafer shortages and competing demand for AI accelerator materials. Gaming GPU prices are expected to rise as availability tightens, with Nvidia prioritizing premium segments. While not directly cryptocurrency-related, such hardware constraints could indirectly affect mining profitability and secondary market dynamics for GPU-reliant coins.
Market observers note potential knock-on effects for crypto mining operations still utilizing GPU arrays, particularly for altcoins like ETH (post-Merge), ETC, and RVN. The production cuts may extend the lifespan of current-generation mining GPUs while making upgrades more costly.