Nvidia, long associated with the gaming industry, has significantly reduced its mentions of gaming in recent earnings calls, according to an analysis of company statements. The company's financial reports now show a pronounced shift towards its data center segment, which is driving nearly all of its revenue growth.
In the second quarter of fiscal year 2026, Nvidia reported a total revenue of $96 billion, a figure that has doubled year-over-year. The data center segment alone contributed approximately $89 billion, representing almost 93% of the company's total earnings. This surge is attributed to the escalating global demand for AI infrastructure, encompassing hyperscalers, AI labs, AI-native companies, enterprises, and sovereign customers. Hyperscalers manage extensive AI workloads, necessitating substantial data center infrastructure, while AI labs are at the forefront of technological research and development. AI natives are entities built around AI from inception, and enterprises are incorporating AI into existing structures. Sovereign customers, meanwhile, include businesses and nations seeking control over their AI technology lifecycles.
Nvidia CFO Colette Kress indicated that the company anticipates revenue to grow by approximately 70% in fiscal year 2028, even amidst a challenging memory supply chain. Despite contributing to what is being termed a 'RAMpocalypse,' Nvidia does not foresee a slowdown in demand for AI and data center solutions. This sustained demand leaves the gaming sector with diminished focus.
Historically, Nvidia reported gaming as a distinct segment. However, this has now been consolidated into the Edge Computing segment, which generated $7.2 billion. This segment's growth was bolstered by strong sales of Blackwell workstations, though tempered by slower consumer PC sales influenced by elevated memory and system prices. While the Edge Computing segment saw a 27% year-over-year increase, its contribution pales in comparison to the AI-driven data center business.
Nvidia continues to release high-end gaming GPUs, such as the RTX 50-series. The RTX 5090, for instance, commands a significant price point, yet the emphasis on gaming within Nvidia's strategic priorities appears to have waned considerably over time. The company's last gaming mention in an earnings call was approximately a year prior, at which point AI was already generating ten times more revenue than gaming. This gradual de-emphasis suggests a deliberate pivot in corporate strategy, making the association of Nvidia primarily with gaming now a reflection of past priorities rather than current ones.