Despite booming gaming sales, Nvidia is increasingly focusing on its margins-strong AI division. According to rumors, the production of GeForce-RTX cards could decrease.
• Nvidia convinces with quarterly report
• Gaming sector grows strongly
• Realignment with a focus on AI GPUs ahead instead of gaming?
Nvidia numbers hit
NVIDIA completed the first quarter of the 2026 financial year with strong figures: the profit per share increased to $ 0.96 and was therefore over the analyst expectations of $ 0.935. The chip group also exceeded the forecasts when it comes to sales-with $ 44.1 billion compared to $ 26.04 billion in the previous year and the expected $ 43.28 billion.
However, the outlook disappointed something: Nvidia expects sales of $ 45 billion – less than the market for the second quarter. The reason for this is, among other things, export restrictions for H20 chips that are expected to cost around eight billion US dollars sales.
Despite these prospects, the market remains optimistic. Analysts such as Stephen Innes (Spi Asset Management), Timothy Arcuri (UBS) and HARLAN SUR (JPMorgan) continue to see Nvidia as the central actor in the AI sector. In particular, they praise the company’s resistance in a geopolitical challenging environment and adhere to their purchase recommendations.
Gaming turnover with rapid climb
Nvidia has been able to grow through the AI hype in the past few months. “Our groundbreaking AI supercomputer Blackwell NVL72-a ‘thinking machine’ that was developed for logical thinking-is now produced in series by system manufacturers and cloud service providers,” says Jensen Huang, founder and CEO of Nvidia. “The worldwide demand for Nvidia’s AI infrastructure is incredibly strong,” he emphasized with a view to the positive future prospects of his company.
In addition, Nvidia’s gaming division was particularly evident in the past quarter: sales rose by 42 percent in the year and even 48 percent compared to the previous quarter – and thus exceeded Wall Street expectations by more than 30 percent.
In the corresponding press release, the company also summarized further highlights of the first reporting quarter in the gaming sector. The strong growth was driven by several innovations: With the presentation of the Geforce RTX 5070 and RTX 5060, NVIDIA launches the powerful Blackwell architecture from $ 299 for desktop PCs and from $ 1,099 for laptops. The new DLSS 4 technology is already integrated in more than 125 games, including titles such as “Black Myth Wukong”, “Doom: The Dark Ages” or “Star Wars Outlaws”. And the new Nintendo Switch 2 also benefits from Nvidia’s technology-it is based on an Nvidia chip with AI supported DLSS and enables gaming in up to 4K resolution. In addition, the introduction of the Modding platform RTX Remix caused a stir: You have already tried out more than two million users, supported by the publication of an RTX demo from “Half-Life 2”.
Nevertheless, the share of the gaming business with only 8.5 percent in total sales remains relatively low, as Techspot explains.
Resources redistributed? Focus on AI GPUS instead of gaming hardware
Now reports are increasing that Nvidia could shorten the production of its GeForce-RTX-5000 graphics cards by up to 30 percent in order to expand the production of AI chips. Gaming GPU production in China is to be reduced by up to 30 percent in order to clear capacity for particularly sought-after AI processors, as Techspot reports.
The background to the strategic realignment is the massive demand for AI hardware, which Nvidia has recently made the most valuable company in the world.
A reduction in RTX-5000 production could, however, tighten the already tense delivery situation and the price problem of the Blackwell Gaming cards, since many models are currently being traded above the list price and are difficult to available.
However, observers see Nvidia’s focus on AI chips a comprehensible, but disadvantageous decision-especially because the RTX 5000 series is slowly spreading, as a recent Steam survey shows.
Editor finance.net
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