NVIDIA may face AI supply chain exhaustion risks

NVIDIA is moving quickly in the AI market, but there are concerns about the pace of its product releases. At the recent GTC 2025 event, the company announced new AI lineups that will be released at a troubling speed. Analysts say NVIDIA’s strategy might exhaust the AI supply chain. The company’s Blackwell AI Generations are now set to come out every six months, which could limit availability for competitors. NVIDIA has dominated the market by releasing products before others could catch up, but this rapid release cycle may be problematic. In May 2024, NVIDIA revealed plans to accelerate its AI roadmap, aiming to produce new architectures within a year. However, the launch of the Blackwell GB200 AI servers faced delays due to yield rate issues. These issues caused disruptions in the supply chain until early 2025, when production finally picked up. NVIDIA is now expected to release the Blackwell Ultra GB300 lineup in late 2025. This could mean that the yearly cadence of new products has halved, raising questions about whether the company is creating unnecessary pressure on the supply chain. Additionally, the company announced the Vera Rubin architecture, which is set to launch in late 2026. However, there are rumors that it could be released six months earlier due to advancements in memory production by SK Hynix. NVIDIA’s aggressive approach might keep competitors from catching up, but it also risks creating supply issues. The outcome of this strategy remains to be seen as 2025 progresses, and NVIDIA’s CEO has stated, “the more you buy, the more you save.” Whether this proves true will depend on the unfolding developments in the AI market.