Nvidia predicts explosive future for AI even as gaming graphics revenues plummet by 46%

pcgamer.com:

Nvidia has released its latest earnings info(opens in new tab) showing revenues down by 46% in the most recent quarter compared with the same period a year ago. However, with the computing industry on the cusp of an AI revolution, Nvidia is bullish about the future, something the market seems to agree with. The company's share price is up by over a third since the beginning of the year.

Overall, Nvidia's revenues for the quarter were down by a lesser 21% for a total of $6.95 billion. That's because Nvidia's data center revenue for the period is actually up 11% to $3.61 billion. Gaming graphics revenues for the quarter were $1.83 billion for reference.

So, in the space of a year Nvidia's gaming graphics has gone from equal to roughly half that of its data center revenues. Yikes.

Notable from the earnings call attended by Nvidia's head honcho Jensen Huang(opens in new tab) was virtually no talk of gaming graphics beyond the headline figures. It was all about AI.

The explosion of generative AI models onto the computing scene in recent months, including the likes of ChapGPT and Google's Bard, is proving to be very good for Nvidia's prospects. Huang himself has already said that ChatGPT is «one of the greatest things that has ever been done for computing.»(opens in new tab)

ChatGPT is said to run on around 10,000 Nvidia GPUs and there's no question that the company currently has a significant competitive advantage in the field when it comes to providing the hardware and software tools for setting up large generative AI training models.

Huang didn't make specific predictions about where Nvidia's AI-derived revenues are headed, but he did make it very clear that Nvidia reckons the market is just about to explode.

«There's no