Regarding Nvidia, would AMD not be able to cover the gaps? As Nvidia alone is not the pc industry surely.
The reason i think Nvidia is having a hard time producing cards, is related to the change in market related to AI and Data processing units, which just happen to be from the same chips which are used in GPUs, as the GPUs traditionally used in AI data processing, so they change their production model to focus on a more of a booming market which is AI.
I am one of there certified AI engineers, although i have not been able to get a work with the certification yet....
No there are multiple reasons, AI is actually where most of their cards go to, they just stick it to the gaming side because since ai is the new hotness, gamers get boned once more, however nvidia isn't the only one responsible, but they could fix it if they wanted to.
First is gaming and consumer space is a afterthought to nvidia at this point.
Second nvidia's insistence on using GDDR7 for their gaming line, which some estimates put it at as high as 100$ a vram chip, is stupid.
Third is TSMC, as they have a mostly monopoly on the 3nm node, they've been increasing the cost of their chip wafers each generation, but this is also effecting amd so that's only part of it.
Fourth, nvidia refuses to rein in it's board partners overcharging for cards, because it benefits nvidia's reference designs to let them burn good will so that they can sell more of their inhouse made cards.
Tarriffs are going to increase costs, but that hasn't gone into effect yet and won't until april i believe.
As for amd, yes amd and intel could cover the gaps, but amd's newest gpu is 600$ msrp and that's considered a deal, it might be but the fact we're at this point when for accounting for inflation, the 1080ti was around 800$ equivalent when it released, there's a problem, especially since while no one wants to admit it, the world is in a global economic recession, possibly depression.
The problem here is they keep releasing a gpu every year and technology is not keeping up with demand, logically the thing to do would be to keep say, the 50xx series gpu's on the market for a few years without a new gpu each year and do some long term R&D to reduce costs while improving performance, add to that the fact we are dangerously close to the 2nm wall, this push for things like fake frames and ai learning to make up the difference will only lead to a crash in the market, look at modern gaming, most people aren't playing the newest games anymore, they are playing games from 5+ years ago, the power to performance is not there yet the costs keep increasing because we need a new gpu every year and that let's them get away without optimizing their games.
I firmly believe that gpu's need to last periods about half of a console cycle's life, the constant push forward will only lead us to disaster.