Strong Performance in the Gaming Sector
During NVIDIA’s recent Q3 earnings call, CFO Colette Kress highlighted the impressive results from the gaming division, which posted a remarkable revenue of $3.2 billion, marking a 15% increase from the previous year. Despite this success, Kress cautioned that potential supply constraints could hinder revenue growth in the upcoming fourth quarter.
Potential Challenges Ahead
Kress indicated that while gaming sales were robust in Q3, the company anticipates a sequential decline in gaming revenue for Q4 due to current GPU supply limitations. The holiday season, a crucial period for sales, may see limited availability of gaming GPUs, particularly affecting the RTX 40-series cards, which could drive prices higher.
Looking to the Future with Next-Generation GPUs
NVIDIA is scaling back production of the RTX 40-series to prepare for the highly anticipated launch of its next-generation Blackwell architecture at CES 2025. Rumors suggest that the RTX 50-series, including flagship models like the RTX 5090 and RTX 5080, will be unveiled during the January event. As the company transitions between GPU generations, it plans to continue producing select mobile chips from the RTX 40 series, signaling a gradual shift rather than an abrupt change.
With the holiday shopping season fast approaching, NVIDIA’s GPU supply issues could lead to missed opportunities for customers and affect the company’s bottom line. However, Kress reassured investors that supply is expected to stabilize by early 2025, suggesting a brighter outlook in the near future.
