For many years, GPU products, which focus on the PC gaming market, have been one of Nvidia’s most important businesses. However, as the company gradually began to focus on the development of AI technology, the proportion of its high-end GPUs in overall revenue has begun to shrink, and has even completely changed the way the company presents its financial reports.
According to the latest news disclosed by Nvidia, they will no longer regard the “game business” as an independent department, and will even integrate all non-“data center chip” related businesses into a single category in one fell swoop. Therefore, under the new classification structure, whether it is game graphics card GPUs, GeForce Now cloud gaming services, and other game-related revenue, they will be classified into the “Edge Computing” department along with workstation GPUs, AI models, automotive chips, robots and other businesses.
In the latest public financial report for the first quarter of fiscal year 2027, Nvidia detailed this new calculation method and confirmed that the revenue of its “edge computing” department currently only accounts for about 10% of the overall business. Despite this, the division still generated $6.4 billion in revenue last quarter, but compared with the staggering $75.2 billion in revenue of the AI data center division, there is a huge gap. Therefore, the data center business has officially become the main driver of Nvidia’s growth.
According to Nvidia’s explanation, this adjustment in the department’s financial reporting structure is to “more efficiently reflect the company’s current and future growth drivers.” In comparison, in the last financial report for the fourth quarter of fiscal year 2026, Nvidia still adopted the original classification method and divided its business into four major departments: “Data Center”, “Games and AI”, “Professional Visualization” and “Automotive and Robotics”.
In fact, when “games” and “AI” were merged into the same category before, it was already difficult for the outside world to judge the performance of the two major businesses. Now they have been further fully merged into “edge computing”, which has further reduced transparency and made it difficult for the market to judge whether the growth of this department mainly comes from games, AI, automobiles, or other fields.
Despite the change in classification, Nvidia still emphasized that the revenue performance of the “edge computing” department-related business this quarter has increased by 10% compared with the previous quarter, and increased by 29% compared with the same period last year. However, since the official did not provide the revenue ratio of each business within the department, the specific source of growth is still unclear.
As for products and technology, Nvidia once again mentioned the DLSS 4.5 dynamic multi-frame generation technology that has been launched, and also predicted that the next generation DLSS 5 is coming, calling it the most significant technological breakthrough since the official launch of “ray tracing” in 2018. But for now, the real-time AI image generation technology used by DLSS 5 still has a lot of backlash among players. As for whether there will be a change after it goes online, it remains to be seen at this stage.
As the current main source of growth, the “data center” business successfully broke the historical record with revenue of US$75.2 billion in this quarter. Compared with the previous quarter, there was a growth of 21%. If compared with last year, the increase reached 92%. In an era where the demand for AI continues to explode, Nvidia is clearly making every effort to seize this opportunity to shine.
Source: KOCPC Chinese