Nvidia says it would be making a whole lot more money if it weren’t for the memory crisis it’s contributing to
Nvidia’s latest earnings call reveals the company’s dramatic pivot away from gaming toward AI and data center operations. CEO Jensen Huang reported a projected 70% revenue increase for fiscal 2028, but characterized this as a “constrained” figure limited by memory shortages—ironically, shortages that Nvidia’s own AI hardware demands are exacerbating. Huang indicated unconstrained growth would be significantly higher, following robust year-over-year expansion.
The shift in priorities is stark: Nvidia’s data center segment alone generated $89 billion this quarter, representing nearly 93% of total company revenue. Gaming, once synonymous with Nvidia’s brand, received zero mentions from the company’s board members during the earnings call—a pattern persisting for over a year. This reflects a fundamental restructuring of Nvidia’s business model. While the GPU manufacturer built its reputation on graphics cards for PC gaming, explosive demand for AI accelerators has relegated gaming to a rounding error in their financials. The memory crisis Nvidia cites as a growth constraint stems partly from competing demand for high-bandwidth memory between gaming and AI infrastructure—a problem the company has helped create through its dominant position in AI hardware markets.