NVIDIA shifts focus to AI chips, cutting gaming GPU output by up to 40% as data center revenue hits 91.5% of sales

Yahoo Finance AI · April 25, 2026

AI Summary

•On April 18, 2026, CNBC reported that NVIDIA is prioritizing data center AI processors (Blackwell and Rubin chips) over gaming GPUs. Data center revenue now accounts for 91.5% of total sales, driven by demand for AI chips used in cloud computing and enterprise servers. The shift reflects higher profit margins: AI chips average 69% margins versus 40% for gaming.
•Memory supply constraints forced NVIDIA to allocate production capacity toward AI chips, reducing gaming GPU manufacturing by an estimated 40%. Gamers also pushed back against NVIDIA's DLSS 5 software (released March 16, 2026), citing concerns that AI-generated content affects game design—though NVIDIA clarified that game developers retain control over how the feature is used.
•Gamers and gaming-focused consumers face higher GPU prices and longer waits for new gaming cards as NVIDIA redirects inventory to lucrative data center contracts. Gaming no longer drives NVIDIA's business strategy, meaning the company's product roadmap and supply decisions will be shaped by AI enterprise demand rather than consumer gaming needs.

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