Nvidia Gaming is Booming, Despite Controversy

Nvidia’s gaming division has just had its best quarter to date – 42% YoY Growth

Nvidia has just posted its Q1 FY26 financial report, with the company posting $44.1 billion in revenue. That’s a 69% increase from one year ago, showcasing Nvidia’s continued growth. While AI primarily drives this growth for Nvidia, gaming has also been a significant contributor to it. In fact, Nvidia’s gaming segment has just posted its best quarter ever, with revenues of $3.8 billion.

Nvidia’s gaming revenue has grown 48% compared to last quarter and 42% over this time last year. These gains are thanks to the launch of Nvidia’s RTX 50 series “Blackwell” graphics cards. Unlike prior Nvidia GPU lineups, Nvidia has launched its entire RTX 50 series graphics cards in quick succession. This has bundled all of Nvidia’s RTX 50 series launches into the first half of 2026, generating a lot of revenue for the company.

This growth for Nvidia comes despite several gaming controversies. For starters, Nvidia’s GPUs have notably dropped in quality this year, requiring several bug-fixing updates to address widespread issues. Beyond that, we have continued controversy surrounding the Nvidia-backed 16-pin (12V-2×6) power connector. Furthermore, we have Nvidia’s refusal to allow pre-launch reviews for the company’s RTX 5060.

(From Nvidia’s Q1 FY26 Financials)

Despite Nvidia posting strong gaming results this quarter, AI/data center revenue remains Nvidia’s bread and butter. With over $39.1 billion in revenue, Nvidia’s data center revenues are almost 10x higher than the company’s gaming revenues. Nvidia is no longer a gaming company; it’s an AI company with a gaming side hustle.

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