Like the NVIDIA management, outside analysts hope that the release of the new GeForce RTX 40 video game cards, combined with efforts to remove previous generation stocks, will enable the company to overcome the acute phase of the overproduction crisis by the end of this year. The fourth quarter of the NVIDIA should be the most difficult time in the game market.
Stifel's analysts this week stressed that the NVIDIA has excellent long-term prospects, but short-terms remain vague, because it is difficult to predict when it will get rid of the surplus game graphic processors and begin to build up its profile revenue again. The NVIDIA market is potentially capable of getting into the $1 trillion annual segment, and the company will gain a significant share in this market.
The demand in the game segment will not increase until the end of the current fiscal year, which in the NVIDIA calendar will end by the end of January, as Stifel explains. In terms of the prospects for restoring demand in the game segment, the fourth quarter will become the "done" for the NVIDIA, from which it will later push on its way to an increase in revenues. In addition, in the fourth quarter, the company's revenue will be positively influenced by the start of mass deliveries of computation accelerators with the Hopper architecture. Now, according to the Stifel representatives, the NVIDIA company has significantly restricted the supply of game graphics, and the release of the Ada Lovelace family innovation will be a push to increase them, but not before the next calendar year.