Nvidia has just published (opens in new tab) its latest set of financials for its fourth quarter and fiscal 2023. Despite revenues continuing to follow a downtrend, the results were better than expected. Moreover, Nvidia is seen as a big wheel in AI accelerator hardware, so its shares surged by over 10% in after-hours trading. Another interesting result within the myriad numbers is that Nvidia’s gaming segment revenue is now only 10% more than its rival AMD.
Nvidia and AMD Gaming Segment Tussle
Nvidia’s gaming segment revenue takes account of income from PC GPUs, as well as its Nintendo Switch hardware and GeForce Now games streaming service. Together these operations generated $1,831M during its most recent quarter. Sadly for Nvidia, this revenue figure is down 46% YoY.
AMD’s gaming segment results are derived from the sum of its income from PC GPUs, as well as its significant semi-custom business for both Microsoft Xbox and Sony PlayStation consoles. The latest AMD figures were published at the end of January and showed that its gaming segment revenue totaled $1,644M during its most recent quarter. Thus, we observe the gaming revenue difference between the green and red teams from their latest financial statements is a measly 10 or 11%, and could turn either way in the coming months.
Considering the above comparison in terms of PC GPUs, we don’t see AMD making any waves in the discrete GPU market to account for its close gaming revenue rivalry. The latest Steam Hardware Survey shows market shares are seemingly entrenched at approx 75% Nvidia, 15% AMD, and 10% for others – for the last 18 months. Rather, as mentioned above, AMD’s console chip sales are doing well.
Nvidia’s Latest Results
Turning our focus back to today’s results from the green team, we see that the chip designer brought in $6,061M in revenue during its most recent quarter. This figure, and the net income, was higher than Wall Street expected, and that is almost always great for a share price, post-results publishing. This is despite the most recent quarterly figures being poorer than this time last year.
Yes, the gaming revenue was down, but there was a bright spot for Nvidia investors in the data center. Data center revenue was up 11% over the year, which is a good achievement in a downturn. Moreover, the data center segment includes AI accelerators, and all things AI are very hotly trending at this time.
In 2023 we have seen a lot more PC GPU action from Nvidia, so it has a good chance to grab even more share of the PC market, especially when the mainstream cards start to become available (hopefully at mainstream prices). As for total gaming segment revenue, AMD will still likely enjoy the support from the very strong demand for Sony and Microsoft consoles, but we don’t have much in the way of indications for its mainstream RDNA 3 graphics card product launches.
That's still a ton of revenue for a company that apparently sells mostly console GPUs.
Couple that with the data center offerings running basically same silicon as those gaming cards and you can see why Nvidia has little interest so far in dropping prices. If they can gaming revenue up around or slightly over crypto rates while keeping as many usable cores for the much more lucrative DC market, unfortunately I don’t see things changing.
AI/MI looks to be basically replacing miner demand with better margins.
Overal it was a very disappointing Earnings. Share price most likely did not go up for " better then expected " or "positive guidance". Rather the big boys handling the retail puts in the short term.
Your point of gaming revenue coming close between two companies is valid.
AMD's $1.6B gaming revenue was during much the same period, except that their quarter ended a month earlier: 31 Dec, 2022.
Jensen can buy new leather jacket! And it is good to reduce gaming GPU production and move productiojn to segments that are3 willing to pay!
Sigh… this does not promise cheaper prices…
No problems with gaming along the way, either. I'm not overly impressed with benchmarks because companies (looking mainly at you, nVidia cough) have been known to cheat with widely used benchmarks, especially synthetics. For me, angst with nVidia's tactics goes all the way back to 3dfx and I still recall the dirty tricks from nVidia in those days (the 3dMark nVidia cheat was a big deal in those days and I still recall it vividly.) My bottom line is value, and whether I can play games smoothly without stutter. AMD has been fine over the years, in that regard. Of course, today, there are no concerns over GPU frame rates or CPU performance with AMD.
But...what other people buy doesn't bother me. I want them to enjoy whatever they buy! Just like I do. We owe it to ourselves...;)