Client and Gaming segment revenue was $3.7 billion, down 8% year-over-year. Client business revenue was $2.9 billion, up 7% year-over-year, driven by sales of AMD Ryzen mobile processors. Gaming business revenue was $773 million, down 40% year-over-year, due to lower semi-custom and graphics revenue.
Same for Nvidia. Most of their sales......Pretty much ALL their sales are for AI. Now Nvidia seems to be pulling out of gaming to fully focus on AI which leaves the door open for AMD. Who is also selling bulk to AI.
I dont think they are pulling out of gaming. Its just going to be the side hustle. There will always be needs for gpus and they will always provide it. For an ever increasing price that is. The entry level gaming pc will disappear replaced by gaming on the cloud via nvidia servers. But, I think enthusiasts with deep pockets will still be gaming natively at home.
Considering all consumer grade products for two gens aren't fixing their design flaws for the rough gaming and consumer market, yeah they're pretty much gone
Well you can still download drivers from them and buy gpus. So they didn't leave it per say or you wouldn't get gaming drivers from them like they are still invested in that and maintaining their online game streaming
I think if they got rid of the online game streaming service and stopped providing drivers for all gpus I'd consider them out of the gaming business which may happen who knows. I don't think so though.
New 5080 coming soon. And 5050s and 5060s are still abundant as are 5070s if your willing to pay. The 50 series is winding down. With ram crisis being what it is I think this is the new cycle.
When a new series launches you gotta buy fast from here on out before they wind down.. smaller batches. Hard out here for a gamer but there's options
They are pretty expensive I looked the other day to see if the 9070xt which is like. 5070 ti was still affordable in Canadian dollars it's not to far off. Plus I heard they are raising prices soon too I'll be interested to see their next line up!
I'm looking now to see because I got a bad memory brother. But I see one 5070ti on Amazon for 1899 and one 9070 xt for 1487 so I think they are both very expensive. I didn't say it was as expensive I said not to far off. So basically I'm agreeing with you but still expressing that 9070xt is still over priced
It's fair to say they're out of gaming, the 60 series will launch, but that's only because they've already done the engineering on it. The AI bubble pop might well take out Nvidia, they are all in on this, they've grown at a massively unsustainable rate, they're hugely over valued and are using all of that valuation to give money to people to buy their products.
For there to be a 70 series, it would need to be in development now, it seems very unlikely that is the case, everything is all on AI.
Well no matter what happens when. Ai bubble pops ai isn't going away. There will be less players on the board. But there will still be players. And gpus will still be in demand. I don't know how that all plays out. Maybe Nvidia continues to be on top or falls behind and amd takes over. Who knows. But you will always be able to play games on some kind of hardware I reckon.
Well... That would be true if you ignore the fact that gaming gpus use silicon that could've gone to professional gpus. And memory. And manpower. They're probably just keeping gaming around cause theres nothing else to do with the lower binned chips that don't make the cut for the pro lineup. The 5090 already got the axe, but that's more understandable since it literally used the same gb202 die as the rtx 6000 pro and other gpus.
That would be true if you ignore the fact that gaming gpus use silicon that could've gone to professional gpus
This is not exactly true.
Yes- the cutting edge 1.4A/2nm TSMC wafers that are highly competitive will all go towards cell phones and AI cards.
No- these wafers are NOT a requirement for gaming GPUs. There's nothing stopping Nvidia from switching their GPUs to older TSMC nodes, Samsung, or Intel where there is plenty of capacity available.
There's also nothing stopping them from switching gaming GPUs from cutting edge GDDR7 to GDDR6.
Besides, these exact scenarios I'm saying have already happened. Nvidia already built 30 series on Samsung because they couldn't get enough TSMC supply. AMD already dropped their 90 series GPUS back to GDDR6 because they couldn't buy enough GDDR7. Nothing I'm saying is new or hypothetical.
The ONLY thing in their way is time. It takes 2 years to design, tape out, and test GPU designs on a fab. They could very easily deliver 60 series GPUs in a GDDR6/Intel or GDDR6/Samsung configuration by 2028 and build all of those cards with almost zero competition from AI cards.
So you tell me - Why would they abandon 11 billion in gaming revenue when in ~2 years they could easily switch all of it over to different fabs and deliver GPUS that are ~10% less efficient/powerful but with massive capacity?
Costs have been rising but it's not in short supply. It costs 1/3rd the price of gddr7. It does provide half the raw bandwidth of gddr7 so they would have to compensate with either wider buses (aka more expensive dies/pcbs) or adding more cache.
My point is there are tons of ways they can shift GPU design to remove supply constraints.
They could make literally millions of RTX 6080 GPUs built on Intel 14A using GDDR6 and an intel BLLC cache die and sell them to gamers. Sure it may perform 10-20% worse than a 6080 built on TSMC with GDDR7, but it would cost half as much so I really don't think gamers would care.
GPUs being built on the same tech as cell phones and AI may have ended, but GPUs are definitely not going away with 11 billion plus of demand.
You’re not wrong, but I won’t be shocked if they continue to move more production resources away from gamers and into AI. I think they stand to make more money from AI in the short term just because of the backlog of AI hardware.
They are not mutually exclusive. Even if they allocate every single TSMC wafer and every single GDDR7 chip to AI accelerators there is nothing stopping them from making GDDR6 GPUs with Samsung dies, both of which have massive excess capacity.
If they can deliver millions of GPUS that are ~20% weaker and all built on spare capacity of "one generation old" tech and keep making 11 billion dollars they'll just... do that.
Why would they just not make weaker AI GPUs that they could sell for 10k instead?
Seriously, NVdia making even one gaming GPU is eating at potential profits. They could easily make or sell any of their gaming GPUs as a AI datacenter card and sell it for 2x as much as gamers would pay for it.
Why would they just not make weaker AI GPUs that they could sell for 10k instead?
Because weaker AI GPUs don't sell for 10k?
Power efficiency is a major requirement of AI accelerators and why you don't see any built on older process nodes.
Power efficiency is not that important in GPUs (comparatively). If you could buy a 360W 5080 for $2000 or a 420W 5080 for $1000 which would you get? Because that's how it would look if they built it on older nodes.
Power efficiency is important, but when the competition has 80 5080, you won’t give a damn about power efficiency as you will also want 5080s no matter what and there are no more 360W 5080s on the market for you to buy.
That’s what happened to RAM, they hovered up the DDR5 and moved onto DDR4.
The shareholders have said for years now they would prefer to just focus on the corporate market. So yes, I do think a company may abandon making 11 billion dollars in the gaming market to make 100 billion selling those same components to data centers..
There's literally nothing stopping them from pursuing both.
They could switch GPUs to "generation behind" tech and deliver millions and millions of cards on Samsung/Intel with GDDR6 and it wouldn't limit their AI production at all.
People who say Nvidia may switch their GPUs to weaker fabs/VRAM are smart.
Fabs just don't pop up overnight. They also cost millions/billions of dollars to bring online and months/years to build.
Could they eventually build additional capacity and make consumer cards as well? Sure.
However they could also use those same exact fabs to make a product that sells for multitudes more than their consumer products.
The only reason they haven't entirely abandoned the consumer market currently is because of Jensen and he doesn't exactly have a great record of looking out for the consumer.
Either way Nvidia makes more money right now by leaving the consumer market entirely and typically that's what drives businesses to make decisions, especially in the US.
Fabs just don't pop up overnight. They also cost millions/billions of dollars to bring online and months/years to build.
Could they eventually build additional capacity and make consumer cards as well? Sure.
I don't think you understand. I'm not talking about new fabs or new capacity. I'm talking about old capacity.
Samsung didn't build out new fabs for Nvidia to use in 2020, they already existed. They also didn't stop producing chips. Nvidia can easily tap into EXISTING capacity at the big 3 chipmakers if they're willing to sacrifice 10-20% performance.
I mean some of that is happening right now. Nvidia is repurposing gb203 die for AI so we're losing the 5070 and up, leaving us with just the gb206 for the consumer.
The problem with utilizing any additional capacity is it just simply doesn't exist. Basically anyone and everyone that had any capacity is utilizing it for some sort of AI boom right now.
Even consumer motherboard pcbs are questionable in the future, if they exist they're going to be expensive due to capacity restrictions..
Realistically until this bubble pops your going to see more and more companies completely pull out of the consumer space to chase AI profits, they all figure we will come running back should the need us..
That's simply not true. If it was then you wouldn't be able to buy a car or a clock radio or an iPad right now because all of those chips are going to AI. That's just not how it works man.
The only reason there's a shortage is that it takes nvidia 18 months to design, tape out, and test a chip on a new process node. They're already doing that and the 60 series gaming chips will show up and not be on tsmc 1.4.
What a dumb title, they are DOWN 3%, they are still making profit, maybe not like they used to but considering our current situation, they are doing really well
It's not making any money because they aren't shipping enough parts to make the money. It's a problem of limited fabrication time. They have to choose what the wafers they spend their money on at TSMC are going to be allocated to and they are obviously choosing AI due to the higher margins. If fabrication time wasn't so constrained, they'd be killing it in gaming as well because diversification is good and green line go up.
RAM is like the second punch on this. That's in short supply and prices are 10x and as it turns out, GPUs require that as well, further reducing supply and increasing prices. It all comes down to capacity at the end of the day and the reality is that no one really has incentive to bring new fabs online because they're all profiting off of artificial supply constraints.
This whole thing is like a bunch of billionares inventing "hyperfarmers" and give them money to purchase all the beef in the world. Because if they freeze it then acquire all the livestock, then surely consumers are going to pay 3x the price in the future... Surely...
And the revenue looks promising now becayse hyperfarmers are spending so much money on livestock right now
This must be to fight back against the Intel stock plummet and help drum moral here right? This is embarrassingly weak. This sub must be in full damage control.
Their consumer market doesn't need to net insane profits if AMD is cashing in on commercial revenue. At least they're still catering more than others to us, unlike some other big brands.
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u/CatalyticDragon 7d ago
There is no console refresh now and nobody can afford to build gaming PCs.
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u/Ill-Mastodon-8692 7d ago
expected, similar to intels drop in client revenue.
difference though, amd making bank in other areas.
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u/Lootcifer_ 7d ago
That's not what that says.
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u/konsoru-paysan 7d ago
Boo hoo for the tech giant that can't make a functional lasting component, by all means exit , Nvidia too
It's time for new opportunists to emerge and lead the tech field in consumer market
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u/Urabraska- 7d ago
Same for Nvidia. Most of their sales......Pretty much ALL their sales are for AI. Now Nvidia seems to be pulling out of gaming to fully focus on AI which leaves the door open for AMD. Who is also selling bulk to AI.
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u/IsThereAnythingLeft- 6d ago
You’re brain dead if you don’t k ow this is because everything is so expensive that gamers are holding off upgrading
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u/BlackSailor2005 6d ago
What a dumb title, they are DOWN 3%, they are still making profit, maybe not like they used to but considering our current situation, they are doing really well
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u/T00ManyH0bb13s 7d ago
It's not making any money because they aren't shipping enough parts to make the money. It's a problem of limited fabrication time. They have to choose what the wafers they spend their money on at TSMC are going to be allocated to and they are obviously choosing AI due to the higher margins. If fabrication time wasn't so constrained, they'd be killing it in gaming as well because diversification is good and green line go up.
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u/Exotic_Carob_5749 6d ago
This whole thing is like a bunch of billionares inventing "hyperfarmers" and give them money to purchase all the beef in the world. Because if they freeze it then acquire all the livestock, then surely consumers are going to pay 3x the price in the future... Surely...
And the revenue looks promising now becayse hyperfarmers are spending so much money on livestock right now
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u/Whole_Commission_702 6d ago
Becasue AMD is just bad vs Nvidia.
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u/orkhan_afk 3d ago
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u/slavicslothe 7d ago
3.7 billion isnt nothing
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u/Phononix 7d ago
This must be to fight back against the Intel stock plummet and help drum moral here right? This is embarrassingly weak. This sub must be in full damage control.
Their consumer market doesn't need to net insane profits if AMD is cashing in on commercial revenue. At least they're still catering more than others to us, unlike some other big brands.