For the fiscal year ending January 29, 2023, Nvidia (NASDAQ: NVDA) saw its gaming revenue decline 28% from FY 2022 to $9.1 billion. Overall annual revenue was flat at $27 billion. For fiscal 2023 net income was down 55% YOY to $4.4 billion.
Analysis
The past year was rough for Nvidia, but the company is clearly poised for strong growth in coming quarters. Investors are once again bullish as the company stands to benefit from the growth of the artificial intelligence (AI) market.
Gaming revenue soared in fiscal 2022 (ending 1/29/22) up 61% to $12.5 billion. This made for a tough comparable. Overall gaming revenue was up 17% in fiscal 2023 versus fiscal 2021.
But the gaming segment is no longer the core of Nvidia. Investors have once again become bullish on Nvidia in the past two months but it is not because of games. Nvidia is supplying GPUs for data centers. In the past year, revenue from the Data Center segment soared 41% and passed Gaming as the largest segment. Furthermore, Nvidia is a leading supplier of GPUs for the AI market, including ChatGPT.
In the DFC Intelligence Video Game Stock Index, Nvidia was one of our initial stocks. The consensus estimate for Nvidia was 20 to 25% growth. DFC was more bullish looking at 45% growth. By mid-March, Nvidia’s stock is up 80% over the start of the year!
