I know stock prices is driven by AI hype but how much does it actually effect the bottom line of Nvidia? I think GPU improvement happens regardless of AI.
Datacenter revenue alone is ~10x of gaming. The datacenter revenue is thought to have literally ~100x the earnings all up (H100 and 4090 have similar transistor counts but the H100 sells for over $30k while the 4090 sells for $2k which indicates huge margins).
Gaming is pretty much insignificant for nvidia. That’s why nvidias stock has 10x’ed recently and their PE looks better now than it did 5 years ago despite that stock increase. They found a new market that dwarfs their old market.
Of course, the GPUs for the datacenter and for gaming are the same designs, so my read is that in gaming NVIDIA makes up for lack of actual performance for traditional rendering by pushing technologies that can utilize tensor cores like AI upscaling, frame prediction, ray tracing + denoising, etc.., that don't actually contribute to game graphics as much as they could have if they did an architecture tailored to gaming needs instead, with the technologies that they have. It's also sexier in theory to talk about exclusive AI-powered technologies proprietary to NVIDIA than just better performance.
Gaming almost doesn't even register in Nvidias revenue anymore.
But I do think Jensen is smart enough to not drop gaming completely, he knows the AI hype might come and go and competitors might finally scrounge up some working SDKs for the other platforms.