The last time I wrote about Nvidia (NVDA) was back in February when it was still recovering from its big dip. The company has been doing well since then, but it still has plenty of problems and challenges to face. One thing we’ve learned over the past few months is that the gaming industry isn’t going anywhere anytime soon, which may be good news for those who want more VR and AR headsets on their shelves. That said—and forgive me for being blunt here—Nvidia’s recovery will likely take longer than you think unless something changes in its business model or ecosystem strategy.
Nvidia’s Gaming Recovery Will Take a While
Nvidia’s gaming business is likely to be weak for some time. The company’s stock price will likely continue to fall on a positive basis, but that doesn’t mean there won’t be any recovery in the future.
Nvidia will be weak for some time. The company has been working on its recovery since it announced its plan last month, and we don’t expect things to change dramatically until next year at the earliest.
Nvidia has been working on its recovery since it announced its plan last month, and we don’t expect things to change dramatically until next year at the earliest.
The new graphics cards, which were unveiled earlier this year, won’t be released until the third quarter of the 2020 fiscal year.
The new graphics cards, which were unveiled earlier this year and won’t be released until the third quarter of 2020, will be available for purchase in Q3.
The new graphics cards are not only exciting for gamers but also for tech companies like Nvidia who rely on hardware sales to grow their bottom line. This is why it’s important that you keep an eye on what’s happening at CES 2019 as they could reveal some major news about next year’s lineup of gaming hardware!
The company has spent the past year improving its gaming portfolio with new products like the RTX 2080 Ti and RTX 2080 graphics cards. It also introduced a series of software updates that increase performance for games as well as other applications like Adobe Premiere Pro, which is used by video editors to create movies. Nvidia expects sales in this segment to rise by double digits in Q3 2019 compared to last quarter, but it’s still not enough to offset declines in other areas. AMD’s 7nm chips will be the first to hit the market, but they’re not going to be the only option. Intel is also working on its own 7nm processors, and it plans to release them sometime in 2019.
The show is scheduled to take place January 7-10, 2019 at the Las Vegas Convention Center. There will be plenty of news coming out of CES in the form of press conferences and product launches, so you should be able to get a good grasp on what’s going on with Nvidia’s new graphics cards and other gaming hardware.
AMD will have a 7nm chip on the market for more than a year by the time Nvidia gets its product out there. AMD is also poised to be more competitive in the high-end gaming space.
There’s no doubt that AMD is going to be one of the first companies to release a 7nm chip. The company has been working on this technology since 2017, and it will be shipping its first 7nm products later this month. Nvidia hasn’t announced when it will release its own 7nm chips—but don’t get too excited about that news: It could be months or years before you see them in action for gaming purposes.
So what exactly is going on here? Nvidia’s gaming business has been struggling for a while now, but the latest results are especially bad. This was largely due to lower sales of its GeForce cards, which fell 23% compared to the same period last year.
Nvidia is releasing its next-gen mobile chips later this month, but expect them to take a while to move through to gaming PCs, so they won’t generate a lot of revenue in Q1.
Nvidia is also launching its next-gen mobile chips in Q1. The company has not yet announced how much they will cost or when they will be available for purchase.
The company’s stock price will continue to fall on a positive basis, but that doesn’t mean there won’t be any recovery in the future. Nvidia will be weak for some time. The company has been working on its recovery since it announced its plan last month, and we don’t expect things to change dramatically until next year at the earlier. While it’s impossible to know what’s in store for CES 2019, there are some rumors circulating around the internet that could help you figure out what to expect. One such rumor is that Nvidia will announce their next generation of RTX cards, which would be the third generation of their Turing architecture. The rumored specs include. The company has been working on 7nm technology since 2017. AMD’s first 7nm chips will be released later this month, which means that we should see a new card from the company sometime in 2019—possibly at CES or GDCThe company has said that it will release its next-gen desktop GPUs in Q1 as well, but the first cards to launch will be RTX 2060 and RTX 2070 models. These are likely to cost over $500, and for most consumers, they’ll probably be too expensive.
The two upcoming consoles from Sony and Microsoft could be big sources of revenue, but those aren’t slated to come out until the holiday season.
The two upcoming consoles from Sony and Microsoft could be big sources of revenue, but those aren’t slated to come out until the holiday season. In the meantime, Nvidia is looking to increase its gaming market share with a recovery in demand for graphics cards.
Nvidia’s gaming recovery will take a while because it has been hit hard by declines in PC sales over the past few years due to cryptocurrency mining as well as new technologies like virtual reality that require more powerful hardware than what’s available today (though there are some exceptions).
Gaming Is the Problem for Now
You might be wondering what’s going on with Nvidia’s gaming business. The company is having trouble, and it looks like things won’t get better soon.
Nvidia’s gaming business has been pretty bad of late, but it’s not just because of the rise of streaming services such as Netflix and Hulu. In fact, there are other factors at play here: namely AMD’s latest graphics cards (which are better than anyone expected) and Microsoft’s recent launch of its own console (which could open up new opportunities).
But despite these challenges—and others we haven’t mentioned yet—Nvidia still owes us an explanation for why its gaming division has been struggling so much lately.”
Nvidia’s gaming business has been a solid driver of growth for many years. But its three key drivers—Geforce GPUs, GeForce Now cloud gaming services and the PC ecosystem—are all seeing declines in their most important products. Gaming revenue fell 4% year-over-year in the quarter, while the gaming segment gross margin declined from 59% to 54%. The decline is even more pronounced when looking at the company’s results excluding cryptocurrency mining sales: Revenue declined by 9% year over year, and gross margins dropped from 60% to 39%.
Gaming Won’t Be the Problem Forever
The company’s gaming business is likely to be weak for some time. But it won’t be the only problem Nvidia faces as a public company.
Nvidia is still the leader in graphics cards, but that market has also been shrinking for years, and now it’s showing signs of plateauing after years of growth.
Nvidia won’t disappear from the gaming space altogether; they just might have to focus more on their other businesses — those like autonomous vehicles or data centers — if they want to keep growing their revenue (and profits).
Nvidia isn’t alone in its struggles. The PC market has been on the decline for years, and Nvidia’s graphics cards have always been more popular among gamers than those who just wanted to do light web browsing. So if you’re wondering what the problem is, take a look at this chart from StatistaNvidia has been doing its best to push into other markets such as autonomous vehicles, but that’s a long-term play. Until then, the company is looking to make up for lost revenue in gaming by getting in on the new consoles.
Nvidia Still Has Some Other Problems
In addition to the problems it’s facing with its gaming business, Nvidia has other issues that could take a while to resolve. The company is still dealing with the fallout from the Note 7 battery debacle.
Nvidia also faces competition from AMD and Intel in mobile computing; both have made significant gains over recent years as gamers shift towards small devices like tablets or laptops rather than consoles like Microsoft’s Xbox One X or Sony’s PlayStation 4 Pro (PS4).
But even those businesses are facing challenges. Nvidia’s data center business is growing rapidly, but it’s still a small part of the company’s overall revenue (about 10% in 2018), and it won’t be easy to maintain that growth rate. And autonomous vehicles might have some promise, but they’re unlikely to become mainstream anytime soon, making them an odd fit for a company known for its gaming products.
The Bottom Line
Despite its strong fundamentals, Nvidia’s gaming business will likely be weak for some time. The company is facing a lot of challenges as it tries to recover from the decline in its core graphics chip business.
Nvidia’s financial results were better than expected, but they still disappointed investors who had hoped for a stronger beat on revenue and gross margins (the difference between revenue and cost of goods sold). Businesses that depend more heavily on GPUs are likely to continue seeing earnings declines until there are fewer gamers using them or new games become available without them.
Nvidia has also been making significant investments in AI and has even built its own chip, called Xavier, to accelerate the technology. The company sees a lot of potential in AI, and it’s working with Microsoft to develop software that can process data faster than ever before.
Nvidia’s gaming business is likely to be weak for some time.
As a result, it’s unlikely that the company will be able to fully recover its gaming business in the near future.
Nvidia may have been hit hard by the battery issue and other problems, but it’s not all doom and gloom. The company is still one of the top providers of graphics chips in the world, and new technologies like artificial intelligence could help it diversify its business beyond gaming. However, there are some bright spots in the company’s future.
Nvidia has been working hard to diversify its business by expanding into new areas like artificial intelligence and self-driving cars. While the company still focuses on gaming, it’s also working with companies like Toyota to design autonomous vehicles.
It will take a while for Nvidia’s gaming recovery to materialize.
It will take a while for Nvidia’s gaming recovery to materialize.
The company is likely to be weak for some time, in part because of its previous mistakes and in part because it has been on the wrong side of trends that have changed over the last few years.
Nvidia’s gaming business has been under pressure in recent years, with gamers switching to Intel and AMD processors. The company launched new graphics chips last year that were intended to win back customers who had moved away from Nvidia’s products.
The company has lost some of its competitive advantages over the last few years, and it’s struggling to keep up with new trends in the gaming industry. Nvidia has been on the wrong side of major trends that have changed over time, including cloud gaming and streaming services such as Netflix.
The company has also struggled to keep up with Intel and AMD, which have been aggressively marketing their own products. Nvidia’s future looks weak at the moment, in part because of its previous mistakes and in part because it has been on the wrong side of trends that have changed over time.
Nvidia’s gaming business is likely to be weak for some time. The company needs to sort out its problems with its graphics chips, and it needs to show that it can compete in the high-end gaming space. The release of new mobile chips this month was a good sign that Nvidia isn’t giving up on the gaming market just yet, but there’s still plenty more work ahead before we see any kind of recovery take place.