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.
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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.