Inno3D Warns of Worsening Graphics Card Supply, Potential PC Price Hikes

Singapore-based Inno3D, owner of brands like Inno3D and Zotac, has warned of a potential deterioration in graphics card supply over the coming months. The company stated that the PC market continues to face significant challenges, with severely restricted supply leading to increased component costs and a subsequent decline in consumer demand.

The entry-level segment of graphics cards is expected to experience a more pronounced shortage, potentially driving up the manufacturing costs of desktop computers. While Inno3D did not specify the exact causes for the supply issues, the current PC market landscape suggests that the memory shortage driven by the AI boom is impacting the entire sector.

According to Inno3D, the supply constraints have extended beyond graphics cards, with delivery lead times for PC components such as CPUs and memory significantly lengthening, affecting the entire industry. The situation is anticipated to intensify further in the second half of the year, presenting greater difficulties for major PC manufacturers.

However, Inno3D plans to counter these challenges by introducing new GPU servers and AI products in the latter half of the year, aiming to offset the slowdown in consumer electronics growth.