Warranty Week, Nvidia’s warranty claim rate for discrete GPUs surged by nine times from the fourth quarter of 2024 to the fourth quarter of 2025. The company concluded the year with a claim rate of 0.90%. In other terms, Nvidia issued a warranty claim for almost one out of every hundred discrete GPUs sold. The total expenditure on warranty claims for the year 2025 reached $894 million, reflecting a 1,000% increase from the mere $81 million in 2024.
Nvidia stands as the leading U.S. semiconductor firm. The company markets discrete GPUs utilized for high-performance gaming PCs, artificial intelligence development, and professional graphics rendering. However, Nvidia does not dominate the global semiconductor market; more than half of all computer chips are manufactured abroad. Nonetheless, Nvidia has significant financial reserves. The company wrapped up 2025 with $8.22 billion allocated in its warranty reserve account, indicating its readiness for a potential rise in claim expenses.
