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Gaming GPUs are no longer the most profitable business for Nvidia

Q4 should see the gaming GPU division back on top, as the Ampere gaming GPUs will be hitting the market in late September. (Image Source: pond5.com)
Q4 should see the gaming GPU division back on top, as the Ampere gaming GPUs will be hitting the market in late September. (Image Source: pond5.com)
Thanks to the Mellanox acquisition and the launch of the Ampere A100 compute accelerators in mind Q2, the data center business overshadowed the gaming GPU division, which still did quite well. A reversal is expected to happen in Q4 this year, when the Ampere gaming GPUs will have hit the market.
Bogdan Solca,

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For the first time in team green’s history, the quarterly earnings from the gaming GPU business have been surpassed by the revenues brought in by the data center branch. This should make more sense if we factor in the Mellanox acquisition from last year, which is now starting to show its benefits.

The Q2 earnings for the 2021 fiscal year revealed by Nvidia yesterday show how the data center business brought in US$1.75 billion, which translates into 54% growth over the previous quarter and an impressive 167% growth on a year-over-year basis. Apart from the Mellanox boost, the rampant growth is also attributed to the Ampere A100 compute accelerators that started shipping in May. This is clearly acknowledged in the press release: “Our new Ampere GPU architecture is sprinting out of the blocks, with the world’s top cloud service providers and server makers moving quickly to offer NVIDIA accelerated computing.”

Despite the surprising growth with the data center sector, the gaming GPU division still performed as expected, bringing in US$1.65 billion for Q2, which translates into 24% growth over Q1 and 26% growth on a year-over-year basis. Other segments that brought significant revenues include the professional virtualization business with US$203 million and the automotive branch with US$111 million. Regarding the automotive side of things, the press release mentions that “Mercedes-Benz’s partnership with NVIDIA to power its next-generation fleet of luxury cars — from the computer to the AI software, and from the cloud to the car — is transformative."

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Bogdan Solca
Bogdan Solca - Senior Tech Writer - 1572 articles published on Notebookcheck since 2017
I first stepped into the wondrous IT&C world when I was around seven years old. I was instantly fascinated by computerized graphics, whether they were from games or 3D applications like 3D Max. I'm also an avid reader of science fiction, an astrophysics aficionado, and a crypto geek. I started writing PC-related articles for Softpedia and a few blogs back in 2006. I joined the Notebookcheck team in the summer of 2017 and am currently a senior tech writer mostly covering processor, GPU, and laptop news.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2020 08 > Gaming GPUs are no longer the most profitable business for Nvidia
Bogdan Solca, 2020-08-20 (Update: 2020-08-20)