Nvidia no longer reports its “gaming” revenue separately in its financials
Nvidia folds gaming into its new “Edge Computing” segment, burying its gaming revenues
With its newest earnings report, Nvidia has made a major change to how it reports revenues. In the past, Nvidia was a gaming-focused company, where gaming had its own distinct earnings category. Over time, datacenter revenue grew and became the core of the company. Now, Nvidia has removed its dedicated gaming revenues from its financials and has buried them in its new “Edge Computing” market platforms.
From now on, Nvidia will no longer be providing clear/distinct gaming earnings numbers. “Edge Computing” includes PC revenue, consoles, workstations, AI-RAN base stations, robotics, and automotive. This will make it hard to tell if Nvidia’s gaming revenues are growing or declining moving forward, as “Edge Computing” is a much broader category.
Nvidia has stated that its new reporting framework “better reflects its current and future growth drivers”. This implies that Nvidia no longer sees gaming as a growth area.
NVIDIA is transitioning to a new reporting framework that better reflects its current and future growth drivers. NVIDIA will have two market platforms — Data Center and Edge Computing. Within Data Center, NVIDIA will report two sub-markets, Hyperscale and ACIE, which incorporates AI Clouds, Industrial and Enterprise. Hyperscale will include revenue from the public clouds and the world’s largest consumer internet companies, while ACIE addresses NVIDIA’s growth opportunity in diverse AI purpose-built data centers and AI factories across industries and countries.
Edge Computing highlights data processing devices for agentic and physical AI including PCs, game consoles, workstations, AI-RAN base stations, robotics and automotive.
– Nvidia
Honestly, this is a pretty fundamental change to how Nvidia reports its earnings. If I were to guess, I suspect that Nvidia’s traditional “gaming” revenues are expected to decline next quarter, and this change in reporting will mask that. With memory prices making gaming PCs much less affordable, a decline in gaming GPU sales isn’t unexpected. That said, if Nvidia includes gaming with other categories, the overall “edge computing” segment could still grow.
If nothing else, this change shows how far gaming has fallen inside Nvidia. What was once its core is no longer worthy of being an independent segment in its financials. That said, Nvidia’s shareholders don’t care about gaming; they just want to see the numbers go up.
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