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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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American Airlines joins the flock, hiking bag fees amid higher jet fuel prices

American Airlines on Thursday announced that it, too, will be hiking the fees it charges customers to check luggage.

With the move, all four of the major US airlines, which together control about 80% of the US market, have now hiked their baggage fees in recent days amid surging jet fuel prices.

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

Since late March, JetBlue, Delta Air Lines, United Airlines, Canada’s WestJet, and Southwest have hiked their fees. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

American Airlines updates bag fees and Basic Economy fares

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

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Less than a year after implementing them, Southwest is also hiking its bag fees

Southwest Airlines has joined the growing list of airlines opting to hike their bag fees amid sustained higher jet fuel costs.

Starting today, the first checked bag at the carrier — which implemented bag fees less than a year ago — will jump from $35 to $45, and the second from $45 to $55. Southwest quietly disclosed the change Tuesday.

Southwest assigned the decision to “part of an ongoing analysis of the business and against the evolving global backdrop.”

As of Wednesday, jet fuel prices dropped to $4.16 a gallon, per the Argus US Jet Fuel Index, down from $4.81 on Tuesday following President Trump’s ceasefire announcement, which sent travel stocks soaring. Major airlines have shed some of those gains in premarket trading Thursday.

With the move to hike bag fees, Southwest joins JetBlue, United Airlines, Delta Air Lines, and Canada’s WestJet, all of which also boosted fees this month. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.