NVIDIA's gaming "GeForce" GPU revenue is back in the green as the company reports a 22% growth and normalization of the market.
NVIDIA Believes Gaming GPU Market Has Normalized, GeForce RTX 40 GPUs Deliver Revenue Growth With Laptops Taking The Lion's Share
For Q2 FY24, NVIDIA posted a gaming revenue of $2.49 Billion which marks a 22% growth from the previous year and an 11% growth over the previous quarter. According to NVIDIA's CFO. Colette Kress, the company believes that the global demand for gaming GPUs has normalized after hitting lows in the preceding year.
While gaming didn't see as gargantuan of an increase as the Data Center segment, it's still a good sign of things to come, and the growth was mainly driven by NVIDIA's GeForce RTX 40 GPUs on both laptops and desktops. NVIDIA also shares that the laptop revenue outpaced desktops as demand during the back-to-school season kicked up and is further going to remain the case in the coming quarters due to the holiday season.
Now moving to gaming. Gaming revenue of $2.49 billion was up 11% sequentially and 22% year-on-year. Growth was fueled by GeForce RTX 40 Series GPUs for laptops and desktop. End customer demand was solid and consistent with seasonality. We believe global end demand has returned to growth after last year's slowdown. We have a large upgrade opportunity ahead of us. Just 47% of our installed base have upgraded to RTX and about 20% of the GPU with an RTX 3060 or higher performance.
Colette Kress, NVIDIA CFO
NVIDIA also shared that the gaming market has a large business opportunity with only half of its user base (47%) equipped with an RTX GPU and just 20% of those RTX users are equipped with a graphics card that offers RTX 3060 or higher performance. For that purpose, NVIDIA launched its latest GeForce RTX 4060 series cards though the desktop offerings aren't the best bang for the buck. Whether that changes in the next couple of months remains to be seen but for now, even an older RTX 3060 or 3070 card might be a better value given the recent discounts.
Laptop GPUs posted strong growth in the key back-to-school season, led by RTX 4060 GPUs. NVIDIA's GPU-powered laptops have gained in popularity, and their shipments are now outpacing desktop GPUs from several regions around the world. This is likely to shift the reality of our overall gaming revenue a bit, with Q2 and Q3 as the stronger quarters of the year, reflecting the back-to-school and holiday build schedules for laptops.
In desktop, we launched the GeForce RTX 4060 and the GeForce RTX 4060 TI GPUs, bringing the Ada Lovelace architecture down to price points as low as $299. The ecosystem of RTX and DLSS games continue to expand. 35 new games added to DLSS support, including blockbusters such as Diablo IV and Baldur’s Gate 3.
There's now over 330 RTX accelerated games and apps. We are bringing generative AI to gaming. At COMPUTEX, we announced NVIDIA Avatar Cloud Engine or ACE for games, a custom AI model foundry service. Developers can use this service to bring intelligence to non-player characters. And it harnesses a number of NVIDIA Omniverse and AI technologies, including NeMo, Riva and Audio2Face.
Colette Kress, NVIDIA CFO
Lastly, NVIDIA highlights its new software advances for the gaming segment such as DLSS 3.5 and ACE which can be key drivers for further revenue and adoption of the GeForce RTX 40 GPUs. The company so far offers over 330+ RTX games and applications which eclipses anything that the rest of the competition has to offer.
About the author: A Software Engineer by training and a PC enthusiast by passion, Hassan Mujtaba serves as Wccftech's Senior Editor for hardware section. With years of experience in the industry, he specializes in deep-dive technical analysis of next-generation CPU and GPU architectures, motherboards, and cooling solutions. His work involves not only breaking news on upcoming technologies but also extensive hands-on reviews and benchmarking.
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