Like NVIDIA management, third-party analysts are hopeful that the release of the new GeForce RTX 40 family of gaming graphics cards, combined with efforts to get rid of stocks of previous generation products, will allow the company to overcome the acute phase of the overproduction crisis by the end of this year. The fourth quarter for NVIDIA should be the most difficult period in the market for gaming solutions.
Image Source: NVIDIA
Stifel analysts this week emphasizedthat NVIDIA has excellent long-term prospects, but the short-term remains vague, as it is difficult to predict exactly when it will get rid of excess gaming GPUs and begin to increase core revenue again. The market for computing accelerators in the future is able to provide NVIDIA with access to a segment with an annual turnover of up to $ 1 trillion, and the company will receive a significant share in this market.
Demand in the gaming segment will not grow until the end of the current fiscal year, which in the NVIDIA calendar will end by the end of January, as Stifel representatives explain. From the point of view of the prospects for a recovery in demand in the gaming segment, the fourth quarter will be the “bottom” for NVIDIA, from which it will further push off on its way to revenue growth. In addition, in the fourth quarter, the company’s revenue will begin to be positively affected by the start of mass deliveries of computing accelerators with the Hopper architecture. Now, according to Stifel representatives, NVIDIA has significantly limited the supply of gaming GPUs, and the release of new products from the Ada Lovelace family will be an impetus for their increase, but this will not affect revenue until the next calendar year.
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