I do not know why I count on something completely different from Nvidia’s quarterly earnings calls. Every time, I get eager for some consideration on the gaming division, and each time, I’m reminded that Nvidia is an AI firm now, not a gaming one.
Still, amidst the discuss of “AI factories” and astronomical knowledge middle compute numbers, there was a glimmer of gaming goodness within the earnings name discussing Nvidia’s This autumn and monetary 2025 outcomes—only a few sentences, thoughts.
In a quick interlude that absolutely will need to have had the AI-rabid traders’ eyes glazing over, Nvidia EVP and CFO Colette Kress explains that gaming income dropped slightly in This autumn 2024 (ending January 26, 2025), however the firm is anticipating a bounce-back:
“Gaming income of $2.5 billion decreased 22% sequentially and 11% year-on-year. Full yr income of $11.4 billion elevated 9% year-on-year, and demand stays sturdy all through the vacation.
“However, This autumn shipments have been impacted by provide constraints. We count on sturdy sequential progress in Q1 as provide will increase.”
In different phrases, there was much less gaming income in This autumn 2024 than in Q3 2024 and This autumn 2023, however income from 2024 total was greater than 2023 income.
“Supply constraints” there positively have been, as we noticed RTX 40-series GPU shares drying up in direction of the tip of final yr. By the time we obtained to January the market was considerably of a wasteland, particularly on the excessive finish, the place essentially the most highly effective RTX 40-series playing cards have been both bought out or overpriced on account of low provide.
This was considerably anticipated although, as a result of Nvidia had reportedly killed manufacturing for nearly all RTX 40-series GPUs in This autumn within the lead-up to the RTX 50-series. This is smart from a gross sales standpoint as a result of it will enhance demand for the brand new 50-series playing cards once they launch.
We’ve definitely seen that demand for the brand new RTX 5090, RTX 5080, and RTX 5070 Ti over the previous month, which together with low provide resulted in low (or no) shares and excessive costs. And that is regardless of none of those playing cards providing spectacular enhancements in conventional render efficiency, and regardless of some black display screen points and lacking ROPs.
That’s what occurs when the shares are minimal, although: they promote out and demand leaves room for each scalping and extortionate pricing effectively above MSRP. We’ve seen simply as a lot of this to this point in Q1 2025 as we did in This autumn 2024.
The excellent news is that Nvidia is forecasting growing provide throughout the remainder of Q1, which is, effectively, now. So the following couple of months ought to hopefully have us seeing extra RTX 50-series playing cards in inventory. Whether these would be the present 50-series playing cards in the marketplace, the upcoming RTX 5070, or perhaps a probably soon-to-launch RTX 5060 Ti, I’m positive we’re all trying ahead to extra GPU-filled digital cabinets.
Not least as a result of extra inventory ought to, in principle, imply decrease costs. Perhaps we may even see among the fabled MSRPs gracing the value tags—I will not maintain my breath, although.
