'We expect supply constraints to be the headwind to gaming in Q1 and beyond' says Nvidia, although it claims demand and inventory levels are 'healthy'
PC Gamer
by Andy Edser February 26, 2026
AI-Generated Deep Dive Summary
Nvidia has signaled that while gaming remains a strong segment of its business, supply chain challenges are expected to pose significant hurdles in the coming quarters. During its recent earnings call, Colette Kress, Nvidia’s CFO, highlighted that although demand for gaming products like the GeForce RTX series is robust and inventory levels are healthy, supply constraints could limit growth in Q1 and beyond. This comes as Nvidia shifts much of its focus to AI and data center revenue, which has surged due to the AI boom.
Kress emphasized that Nvidia has taken steps to secure inventory and capacity to meet demand over multiple quarters ahead. The company’s close ties with major chip manufacturers like TSMC and memory suppliers provide a competitive edge in navigating supply chain complexities. However, Michael Burry, an investor known for his prescient market insights, has raised concerns about Nvidia’s increasing purchase obligations, which have skyrocketed from $16.1 billion to $95.2 billion year-over-year. He suggests that this could leave Nvidia vulnerable if demand were to suddenly drop.
Despite these challenges, Kress remains confident in Nvidia’s ability to capitalize on growth opportunities. The company’s scale, expansive supply chain, and long-standing partnerships position it as a leader in overcoming supply constraints. However, the situation underscores the delicate balance between meeting high demand and managing supply risks, especially as the gaming market faces potential headwinds.
For gamers, this means that while Nvidia continues to innovate and lead in PC gaming technology, they may experience delays or limited availability of popular products like RTX-enabled
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Originally published on PC Gamer on 2/26/2026