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As Nvidia’s gaming results underwhelm, the company sees “very tight” quarters ahead

The company’s former golden goose gaming division booked $3.7 billion in revenue in the fourth quarter, 8% below Wall Street’s expectations.

Max Knoblauch

2/26/26 10:07AM

An intense focus on AI has been overwhelming the gaming industry in recent months.

Nvidia, once a gaming tech company that now intensely and overwhelmingly focuses on AI, knows a bit about that.

The company’s gaming division booked $3.73 billion in revenue in its fourth quarter, underperforming Wall Street’s expectations of $4.03 billion. As has been par for the course over the past two years, the former golden goose division was absolutely dwarfed by Nvidia’s data center business.

Now, amid the ongoing “RAMmageddon” — in which AI’s compute needs gobble up available memory, driving up costs for consumer electronics — Nvidia says the next few quarters could be “very tight” for its gaming division.

“We expect supply constraints to be a headwind to gaming in the first quarter of fiscal 2027 and beyond,” said CFO Colette Kress. “As much as we would love to have additional more supply, we do believe for a couple quarters, it is going to be very tight.”

“Gaming revenue is facing severe supply constraints over the next few quarters that could potentially limit revenue in this segment,” Needham & Co. analyst Quinn Bolton said.

That Nvidia is also struggling through the global memory crunch isn’t a surprise. Earlier this month, a report by The Information found that the company wouldn’t be releasing a new gaming graphics chip this year — a first in company history.

The same trend has seen Micron exit the consumer chip business, Steam delay its console and run out of its handhelds, and Sony reportedly push back its PlayStation 6 plans.

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The $640,000 Luce makes the average Ferrari look like a bargain

Put aside the shape; put aside the smoothing out of Ferrari’s iconic sharp edges; put aside, even, the calls from former Chairman and President Luca Cordero di Montezemolo to “take the Prancing Horse off.” On the grounds of price alone, Luce detractors might have a point.

By now, many of us will have read the criticisms of Ferrari’s first fully electric vehicle, as the Luce — which was unveiled to the world earlier this week and promptly saw the company’s shares crash out in New York and Milan — gets subtly shaded by competitors online and not-so-subtly shaded by basically everyone else.

What makes all of this worse for Ferrari is that, even by the luxury car maker’s notoriously high standards, they’ve slapped a pretty hefty price tag on the Luce, and the company’s CEO, Benedetto Vigna, has already been forced to defend the €550,000 ($640,000) price point, saying yesterday that it’s “fair to pay for innovation,” per Reuters.

While Ferrari’s cars have been getting more expensive of late, as recently as 2022, Ferrari’s average revenue per car sold was around $340,000. At nearly twice that price, this new electric model is obviously proving a little much (visually, conceptually, and financially) for many loyal and long-standing fans of the Prancing Horse to stomach.