NVIDIA lost a billion dollars which AMD may have picked up from gaming GPU sales

AMD or Team Red and Nvidia or Team Green battle it out for GPU supremacy

NVIDIA as a company is on solid ground, but its revenue from the sale of graphic cards isn't great. The company made a billion dollars less in gaming revenue in the first half of 2022, compared to the same time period last year. Incidentally, AMD ensured its revenues climbed up by roughly the same amount, suggesting team red picked up what team green lost.

According to preliminary numbers released by NVIDIA, the company reported $2.04 billion in gaming revenue for the first half of 2022, down from the $3.06 billion it made in 2021. Simply put, NVIDIA's revenues from the sales of graphics cards for gaming have slid 33%.

While founder and CEO of NVIDIA, Jen-Hsun "Jensen" Huang, acknowledged the concerning downturn, he blamed the slowdown on component shortages and “ongoing macroeconomic uncertainty.”

It is interesting to note that these factors seem to have had no negative effect on AMD. The company’s financial report claims AMD's revenue was $6.6 billion for Q2 2022. With $1.7 billion coming from gaming, the sector is now the company’s second-biggest source of revenue, sitting below computer processors, which earned $2.2 billion.

While its rival's revenues from gaming slid, the CEO of AMD claimed the company is growing steadily:

We delivered our eighth-straight quarter of record revenue based on our strong execution and expanded product portfolio. We see continued growth in the back half of the year highlighted by our next-generation 5nm product shipments.

NVIDIA’s CEO has indicated the company could prioritize its efforts to scale up in the exponentially growing field of Artificial Intelligence (AI):

Our gaming product sell-through projections declined significantly as the quarter progressed. As we navigate these challenges, we remain focused on the once-in-a-generation opportunity to reinvent computing for the era of AI.

NVIDIA’s GPUs continue to dominate the high-end GPU market. But the company’s graphics cards still command a hefty premium, despite the recent turmoil in the cryptocurrency market. This often makes AMD’s products a popular choice for budget gaming rig builders. Additionally, AMD’s GPUs are embedded in Microsoft Xbox Series X|S as well as Sony PlayStation 5. These factors could help explain why AMD's revenues, from gaming, are growing.

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