Gaming makes a comeback in Nvidia's AI-dominated empire

Big quote: Nvidia has been raking in record-breaking revenue from its AI data center business. But this time it was the gaming division that unexpectedly stole some of the spotlight. For Q1 FY26, Nvidia's gaming revenue surged to a record $3.8 billion, up 42% year-over-year and 48% quarter-over-quarter. That's the fastest growth rate the gaming GPU segment has seen in years, and even exceeding Wall Street's expectations by over 30%. As for what's behind the surge, analysts says it's all got to do with Nvidia's "Blackwell ramp." The new GPUs may be rolling out faster than any generation before, which the company claims offers massive performance gains, especially when combined with DLSS and Multi-Frame Generation (MFG). However, our benchmark data paints a more tempered picture. Real-world performance improvements are far less dramatic than Nvidia's marketing suggests. Another overlooked factor behind gaming revenue growth may be the increasing diversion of high-end consumer GPUs into ... Read full article.