What does the future hold for Nvidia’s gaming graphics cards?
Nvidia’s latest financial results reveal that the company’s total sales of graphics cards fell 46 percent year-on-year. According to Nvidia, however, this is not a problem.
On the one hand, there are already signs that the situation will improve again. On the other hand, one sees an important driving force for the entire company in the future in the field of artificial intelligence.
Gaming graphics cards aren’t the biggest business anymore
Nvidia made $1.8 billion in gaming graphics card sales in the fourth quarter of 2022. During the same period, Nvidia generated $3.61 billion from sales of data center graphics cards. The data center business more than doubled the company’s revenue.
The 40 series graphics card should have boosted gaming graphics card sales.
At the same time, AI technologies have arrived at the center of society through models such as ChatGPT and are receiving the appropriate attention. ChatGPT itself runs on 10,000 Nvidia GPUs. ChatGPT’s competitors will therefore probably also train their competing products on Nvidia graphics cards.
AI is Nvidia’s new favorite word
The word appears a total of 42 times AI
respectively Artificial Intelligence
in Nvidia’s financial results for the fourth quarter and the 2023 financial year. This makes it clear which focus the graphics card manufacturer will place on AI technologies such as ChatGPT currently and in the future.
Andrew Huang, CEO of Nvidia, compared the impact of ChatGPT on society with the impact of the iPhone in a question and answer session at the University of Berkeley Haas in early February.
The founder and CEO of Nvidia is Nensen Huang. Image via Nvidia Newsroom.
Nvidia itself has been equipping the company’s RTX graphics cards with special AI chips since 2018 in order to be able to use DLSS. The technology can provide an equivalent or even higher image quality in video games while at the same time reducing the necessary resources.
It is also not surprising that Nvidia will focus more on AI technologies in the future.
What does this mean for players?
In the fourth quarter of 2022, a year ago, graphics card sales generated $3.42 billion in revenue, while data center sales were $3.26 billion.
Gaming graphics card sales fell 46% year-on-year to $1.8 billion, while data center graphics card sales rose 11% to $3.62 billion.
DLSS could benefit from Nvidia’s increased focus on AI technologies.
A year ago, however, the demand for gaming graphics cards was also much higher due to crypto mining. Also, the prices haven’t improved with the new RTX 4000 generation, which could discourage many from buying it.
Ultimately, however, it can be assumed that Nvidia will continue to push various lines of business such as gaming, data centers and AI. Because even if the numbers for gaming graphics cards have fallen sharply, Nvidia can still make big profits with them.
If you’re currently looking for a new graphics card, the wait may have been worth it. You can find out more about this in this article: Those who have waited a long time to upgrade could soon be finally rewarded.
What do you think of Nvidia’s expected focus on artificial intelligence? Could technologies like DLSS benefit from this and is it the way every company in the IT market will go sooner or later? Or is it just as easy to get by without a greater focus on AI topics in the future? Write your opinion in the comments!
