Nvidia’s quarterly earnings calls often leave us wanting more from its gaming division, yet this time there was a slight beacon of optimism amidst the discussions on AI and data centers.

Key Takeaways from Earnings Call:

• Gaming Revenue Decline: Nvidia announced that gaming revenue dropped to $2.5 billion, which is a 22% decrease since the previous quarter and an 11% drop year-on-year.
• Overall Positive Year: Despite the quarterly dip, the overall gaming revenue for the year stood at $11.4 billion, marking a 9% increase year-on-year.
• Supply Chain Challenges: Kress mentioned that the decline in gaming revenue was due in part to supply constraints affecting the RTX 40-series GPUs, which were largely out of stock as Nvidia prepared to unveil its new RTX 50-series cards.

Outlook for the Future: Kress expressed optimism about Q1, stating, “We expect strong sequential growth as supply increases.”

This suggests that while the RTX 40-series faced challenges, anticipation for the RTX 50-series should drive better availability in the upcoming months, potentially leading to lowered prices and stocked shelves for eager consumers.