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Gaming graphics cards provided NVIDIA half of revenue in the third quarter, analysts say
NVIDIA is due to report its fiscal third quarter results by Thursday morning, while industry analysts expect gaming products to account for half of its $ 4.42 billion quarterly revenue. The shortage of new GeForce RTX 30 series video cards will eventually be overcome, and in the future the company will be able to strengthen its position in the gaming market.
Image source: NVIDIA
A year ago, NVIDIA’s revenue reached $ 3.01 billion, so its projected value for the last quarter ($ 4.42 billion) will correspond to an almost 1.5-fold increase. If in the second fiscal quarter, revenue in the server segment ($ 1.75 billion) turned out to be higher than the gaming segment ($ 1.65 billion) as a result of the merger of Mellanox, then the third quarter should return the dominance of the gaming direction. However, at least $ 1.8 billion will fall to the share of the server segment, as analysts expect, although the structure of this part of the revenue will be dominated not by Mellanox solutions, but by NVIDIA’s own computing accelerators.
Cascend Securities say that already in September, demand for new gaming video cards from NVIDIA reached the level inherent in later periods of autumn. According to experts, the NVIDIA stock price has every chance to grow from the current $ 541 to $ 620. Susquehanna officials insist on the possibility of the company’s stock price rise to $ 610, citing the shortage of gaming GPUs from the Ampere family as a temporary phenomenon. In the long term, they believe, NVIDIA will continue to increase its market share and average selling price of video cards.