Nvidia’s Gaming Business Could Be in Trouble

From Nasdaq: 2025-05-25 06:15:00

Nvidia dominates with data center GPUs for AI, raking in $35.6 billion in revenue compared to gaming’s $2.5 billion in Q4 2025. But software glitches plague gaming GPUs, risking market share loss to AMD. The new RTX 5060 faces criticism for bugs, crashes, and poor performance, giving AMD an opening to grab market share.

AMD’s Radeon 9060 XT launch on June 5 poses a threat to Nvidia’s shaky gaming GPU business. With a 16 GB variant priced at $349, AMD aims to capitalize on Nvidia’s software woes and potentially steal market share. Nvidia’s lack of focus on gaming could lead to revenue gains for AMD this year.

Nvidia’s struggles with software issues and underwhelming hardware performance could result in significant market share losses to AMD’s Radeon 9060 XT. The 16 GB variant priced at $349 offers a strong alternative to Nvidia’s RTX 5060, potentially attracting budget-conscious gamers. Nvidia’s neglect of the gaming segment may cost them loyal customers to AMD.

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