In the third quarter, NVIDIA's revenue in the gaming segment was almost a third dependent on the sale of components for laptops. Like game consoles, they were prefabricated, and therefore in the fourth quarter they will not be able to influence NVIDIA's revenue. But the company's management has no doubts about the stable demand for desktop video cards.
All this became known from the comments of NVIDIA CFO Colette Kress (Colette Kress) at the Credit Suisse event for investors. In addition, she confirmed that the revenue from sales of desktop video cards in the fourth quarter will be higher than in the third.
Many third-party experts were wary of NVIDIA's revenue forecast for the current quarter. Representatives of the company at the quarterly conference explained the moderate optimism by a certain “seasonal decline in demand for gaming products”. It sounded all the more strange, given that in previous years the fourth quarter for the gaming industry was quite “fruitful”. Then the financial director of NVIDIA tied the forecast for the fourth quarter to the peculiarities of accounting for revenue from the sale of components for Nintendo Switch game consoles and laptops. Both types of products are manufactured long before the fourth quarter, NVIDIA receives money from the sale of core components either in the second or third quarter.
The clarification regarding the extent to which revenue is dependent on gaming laptops adds to the understanding of the specifics of the situation. At least NVIDIA does not transfer its pessimism from the segment of game consoles and laptops to desktop-class products. The seasonality of demand in the segment of desktop video cards is no different from previous years, as the company's financial director reassured. In the fourth quarter, the proceeds from their sale should grow in sequential comparison.
Interestingly, according to an NVIDIA representative, a special contribution to the growth of this revenue should be made by the junior video cards of the GeForce GTX 16xx SUPER series, which were recently introduced. In November and December, the period of their intensive distribution on the market will not be limited. The fiscal quarter at NVIDIA ends in January, and the New Year according to the Chinese lunar calendar is just celebrated at the end of the corresponding month. Consequently, in the Asian region, the demand for new video cards will remain high until early February.
Source: 3dnews.ru