Gaming still at the back seat of Nvidia Q4 2024 performance

Nvidia, the AI chip giant, recently released its fiscal fourth-quarter earnings report, which has garnered significant attention from investors and tech enthusiasts alike. The company reported a record quarterly revenue of $39.3 billion, up 12% from the previous quarter and 78% from a year ago. This impressive growth is largely attributed to the booming demand for AI and data center products.

Key Highlights from the Earnings Report

Revenue and Earnings: Nvidia’s revenue for the fourth quarter was $39.3 billion, surpassing analysts’ expectations of $38.05 billion. The company’s net income rose to $22.09 billion, or 89 cents per diluted share, compared to $12.29 billion, or 49 cents per share, in the same period last year.
AI Demand: The demand for AI inference and new AI models has significantly benefited Nvidia. CEO Jensen Huang highlighted that the company’s leadership in advanced AI chips has enabled them to unlock new use-cases and drive strong demand.
Blackwell AI Chips: Nvidia’s next-generation AI chip, Blackwell, has seen a significant ramp-up in sales, contributing to the company’s strong performance. CFO Colette Kress mentioned that the company expects gross margins to reach the mid-70s later this year once Blackwell production has fully ramped up.
Market Reaction: Despite the impressive earnings report, Nvidia’s stock experienced a slight decline in after-hours trading. Analysts suggest that the market’s tame response may indicate that all the good news has already been priced into the stock.

The RTX 50 series, powered by Nvidia’s Blackwell architecture, has been a game-changer for gamers and creators. The series includes the RTX 5090, 5080, 5070 Ti, and 5070, each offering significant performance improvements over their predecessors.

Performance Uplift: The RTX 5090 demonstrates a 33% performance increase over the RTX 4090 in games like Resident Evil 4 and Horizon Forbidden West. Similarly, the RTX 5080 shows a 15% improvement, while the RTX 5070 Ti and 5070 are approximately 20% faster than their Ada Lovelace predecessors.
AI and Ray Tracing: The RTX 50 series leverages AI and ray tracing technologies to deliver superior graphics fidelity and performance. The inclusion of DLSS 4 with Multi Frame Generation and enhanced Ray Reconstruction has further boosted the performance of these GPUs.
Market Reception: The RTX 50 series has received positive feedback from both gamers and creators. The GPUs’ ability to handle demanding tasks and deliver high-quality visuals has made them a popular choice among users.

Management’s Reaction to Recent RTX 50 News

Nvidia’s management has been actively addressing the recent issues and controversies surrounding the RTX 50 series. The company has acknowledged the concerns raised by users and is working diligently to resolve them.

ROP Controversy: Nvidia’s global PR director, Ben Berraondo, confirmed that the missing Render Output Pipelines (ROPs) issue affects only about 0.5% of all GeForce RTX 5090/5090D and RTX 5070 Ti graphics cards. The company is investigating the matter and has assured users that they are committed to providing a solution.
BSOD and Black Screen Troubles: Nvidia has confirmed that it is investigating the blue screen of death (BSOD) and black screen issues reported by users of the RTX 50 series. The company is working on identifying the root cause and determining whether the fix will come through a driver update or a VBIOS update.