Nvidia is one of the world’s major manufacturers of silicon-based chipsets, mostly known for its GPUs. However, the company does provide other products, including processing devices for data centers, businesses, and more. Interestingly, in the recent Q3 financial report from Nvidia, it has been observed that the revenues have improved drastically by almost 200% compared to last year.
Most of Nvidia’s growth has been recorded in data centers where AI is implemented. As of November 2023, the revenue for these use cases has been $14.51 billion, which is 279% more than the previous year. This directly shows how the world’s dependence on AI has benefitted the company as a whole.
Nvidia’s revenue in Q3 was $18.12 billion, up 206% from a year ago. The data center revenue alone is $14.51 billion, up 279%. Gaming is also up 81% to $2.86 billion. The AI boom continues to benefit Nvidia pic.twitter.com/cTMZZpBTiW
— Tom Warren (@tomwarren) November 21, 2023
Not only that, Nvidia has also shown an increase in revenue when it comes to their consumer-level GPU sales. Compared to last year, the company has earned $2.86 billion which is 81% more than usual. This change has been positive for the GPU makers as games are more dependent on AI as of 2023.
Most of the RTX-certified GPU from the company uses a technology called DLSS which upscales low-resolution renders in real-time. With the release of DLSS 3.5 for the recent generation RTX cards, AI cores on the GPUs have been used extensively which caused a rise in sales.
Gaming is quite growing, especially with the arrival of Game Pass on Nvidia GeForce Now. Maybe a collaboration on AI between MS and Nvidia? And a graphic chip inside the next-generation Xbox?
— Azathot (@Azathot_FR) November 22, 2023
However, these profit margins don’t point toward a decrease in prices for the processing units sold by Nvidia. The increase in prices of chipsets is use to the lack of silicone which is used for building these electronic units.
Even though sand is abundant in the world, only Quartz-rich sand can be used for these purposes. Thus, due to the high demand for these types of materials, the prices of GPU units won’t be falling anytime soon.
Will 50-series Graphics Cards from Nvidia observe a price decrease?
We cannot say for sure if the next-generation 3nm-based GPUs from Nvidia will see a price decrease. In fact, since the graphics card will be using a new form of fabrication, these prices might increase a bit for the next line-up of cards. However, knowing the pricing trends for graphics cards from the company, these chances are still low.
However, from what we can currently gather, the pricing of 50-series cards will be at par with current generation 40-series cards, if not more. On the brighter side, the current generation cards will face a price reduction due to the release of the next line-up.
Holy shit. They won’t come back for gaming now.
— revolver ocelot (@REVOLVO_OCELOTS) November 21, 2023
However, if the worst-case scenario plays out, both an increase in GPUs and a shortage of silicone, might hamper the prices drastically. Additionally, the world is moving forward with the AI race, which increases the dependency on data center cards from Nvidia. Thus, there might be a time when the company might shift its commitment from gamers for a while.
With the fall of crypto-currency, the prices of current cards have fallen a lot and might continue to do so for a while. Unless the crypto market picks up again, there are low chances of observing a massive rise in GPU prices in the future.
