NVIDIA's gaming revenue is up compared to last year, thanks to 'AI gaming technologies'

NVIDIA announced its financial results for the first quarter, and you can probably guess how it went - data center revenue from AI and GPU sales reached record highs, pushing the company's stock price to over $1,000 per share. With everyone all in on AI and NVIDIA leading the charge technology and hardware-wise, you might be wondering how the company's gaming side and GeForce business is going.

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NVIDIA's Gaming sector is doing well - with $2.6 billion in revenue, up 18% from a year ago.

Unlike AMD's struggling Radeon and console gaming revenue, NVIDIA's Gaming sector is doing well - with $2.6 billion in revenue, up 18% from a year ago. Granted, it's nowhere near the $22.6 billion in data center revenue or the incredible 427% year-over-year growth seen in that sector - but it's good news for the traditionally quiet quarter for gaming revenue.

Gaming revenue was down 8% from the previous quarter, but the year-over-year growth is being hailed as a win for GeForce hardware. However, as AI continues to rule the day, NVIDIA's financial results cite 'AI gaming technologies' and 'AI performance optimizations' as critical milestones for NVIDIA's gaming business during the last quarter.

• Read more: AMD gaming revenue declined massively year-over-year, CFO says the demand is 'weak'
• Read more: NVIDIA share price soars above $1,000 as company reports homerun-level earnings

Here's NVIDIA's full summary, which mentions two important upcoming RTX-powered PC game releases for the company: Star Wars Outlaws and Black Myth Wukong.

Gaming and AI PC

• First-quarter Gaming revenue was $2.6 billion, down 8% from the previous quarter and up 18% from a year ago.
• Introduced new AI gaming technologies at GDC for NVIDIA ACE and Neural Graphics.
• Unveiled new AI performance optimizations and integrations for Windows to deliver maximum performance on NVIDIA GeForce RTX AI PCs and workstations.
• Announced more blockbuster games that will incorporate RTX technology, including Star Wars Outlaws and Black Myth Wukong.
• Added support for new models, including Google's Gemma, for ChatRTX, which brings chatbot capabilities to RTX-powered Windows PCs and workstations.

AMD's most recent financial results were also good news for its data center revenue; however, 'Gaming' revenue saw a massive decline, down 48% year-over-year - which includes PlayStation 5 and Xbox Series X|S consoles. AMD EVP, CFO, and Treasurer Jean Hu said that "Demand has been quite weak" for all gaming hardware and that this trend would continue throughout the year's second half.

It'll be interesting to see how this plays out for NVIDIA and its GeForce-powered Gaming sector and whether revenues will slip or continue to post gains as we head into the GeForce RTX 50 Series generation.