- Huge decline in Nvidia Gaming Graphics revenue caused by integrated graphics competition from AMD.
- Nvidia had always ignored the threat from integrated graphics division of AMD and Intel thus retail investors kept their confidence in Nvidia stock’s short term bloated performance.
- AMD APUs such as Ryzen 5 5600G and Ryzen 7 5700G have already surpassed Nvidia’s low-end discrete graphics cards performance.
- Gamers need playable visual performance over premium Nvidia features like expensive Ray Tracing premature technology.
AMD APUs Caused Nvidia Gaming Revenue Downfall, Not Crypto Miners
Recent quarterly report from Nvidia was noticeably horrible for investor confidence as they announced huge loss from the main graphics division. Only $6.7 billion gain in gaming graphics revenue recorded compared to previous outlook of $8.1 billion. Nearly 20% lower than expected.
Average joe retail investors kept believing in Nvidia’s bloated stock since the last crypto crash four years ago when AMD and Intel couldn’t beat Nvidia’s mainstream budget gaming GPUs like GeForce GTX 1050 and 1050 Ti. Current gen AMD or Intel integrated graphics performance provide playable performance in battle royale Apex Legends, PUBG Lite, Fortnite, Fall Guys, CSGO and Valorant esports titles. Mass market plays on budget graphics segment as inflation looms in global economy.
Specifically, you may get away with Ryzen 5 6600U APU’s excellent frame rate which easily equals and even beats Nvidia’s MX 450 laptop graphics. People are well-informed nowadays using online benchmark YouTube channels like ETA Prime, Linus Tech Tips, Hardware Unboxed and Tech Guru. Secret ingredient behind AMD Ryzen 6000 APUs performance is DDR5 shared system memory, surely eliminates video memory bottlenecks in texture pack access.
There is a monster which gives shivering fear to Jensen Huang every night, that’s Steam Deck powered by AMD’s custom APU chip using Radeon RDNA2 iGPU and Zen2 design. Steam Deck uses Linux distro for custom gaming named Steam OS. Of course, every tech stock investor knows about unfriendly Nvidia relations with open source software due to GeForce gaming drivers are mostly closed proprietary source code. Next choice for thin gaming laptop user is Intel Core i5-1240P, packs Iris Xe iGPU and obliterates MX 450 performance too.
In a desktop side of things, Nvidia suffers too. Because AMD jumped into serious development for it’s bigger APUs like Ryzen 7 5700G delivers similar performance as GTX 1050 Ti when you turn on FSR 2.0 frame rate booster using upscaling technology. Literally, you may play any game in the world using Ryzen 5 5600G at Full HD resolution without getting bulky discrete graphics card. Nobody wants Nvidia’s Ray Tracing RTX technology while playing competitive online shooting titles where frame rate is more important over visual quality.
Crypto mining was already unattractive five months ago when Ethereum mining difficulty had reached 15 PH, hence making the best mining GPU RTX 3060 Ti becoming unprofitable in North America and European Union countries.
Warning to Nvidia stock holders! Sell this stock now, don’t hold. Bearish trend may continue which is caused by integrated graphics threat from AMD and Intel.