Market Insight : Is Nvidia's Gaming Segment Facing Decline? AI Revenue Surges to $35.6 Billion

Company Overview

Nvidia Corporation (NVDA) is a leading technology company specializing in graphics processing units (GPUs) and has increasingly focused on artificial intelligence (AI) workloads. While historically Nvidia generated significant revenue from its gaming segment, current trends indicate a substantial shift toward AI-centric data center GPUs with recent reports showing $35.6 billion in AI-related revenue for the fourth quarter of fiscal 2025 compared to approximately $2.5 billion from gaming.

Technical Indicator Breakdown and Analysis (as of 2025-05-25)

• EMA12: 129.024119 - The 12-day Exponential Moving Average shows the short-term trend price level in comparison to recent trading.
• EMA26: 122.73009 - The 26-day EMA represents a longer-term trend perspective.
• MACD: 6.29403 - The Moving Average Convergence Divergence positive value indicates bullish momentum.
• RSI: 63.79929 - The Relative Strength Index near 64 suggests moderately strong buying pressure but not yet overbought. For more on RSI.
• Price Volume: 198,367,700 - The volume traded indicates high market participation and liquidity.
• Close Price: $131.29 - The last traded price.
• Price Change: -$1.54 (-1.1594%) - Reflects slight recent downward price movement.
• High Price: $132.68 - The highest price during the trading day.
• Low Price: $129.16 - The lowest price encountered in the day.
• Open Price: $130.00 - The price at market open.
• Previous Close: $132.83 - The last closing price before current session.
• Bollinger Band Upper: 143.29149 - Indicates the upper volatility band limit showing overbought extremes.
• Bollinger Band Middle: 122.77950 - The middle band represents the moving average baseline price.
• Bollinger Band Lower: 102.26751 - Marks the lower volatility band limit indicating oversold conditions.
• ATR: 4.83292 - The Average True Range measures market volatility; a moderate value here signifies consistent price fluctuations. More on ATR.
• Stochastic Oscillator Slow %K: 77.012784 - The %K value suggests the price is nearing overbought territory.
• Stochastic Oscillator Slow %D: 79.58366 - Indicates a momentum trend similar to %K, supporting potential short-term caution.

The combination of moderately high RSI, positive MACD, and position between Bollinger Bands suggests a generally bullish but cautious technical environment. Despite a slight decrease in price, volume and volatility remain robust, indicating active trading interest and a possible consolidation phase with bullish tendencies ahead.

Trend Sentiment: ▲ Bullish

Analyst Recommendation Trends

Strong Buy: 24

Buy: 37

Hold: 8

Sell: 1

Strong Sell: 0

The analyst consensus heavily favors Strong Buy and Buy recommendations, with 61 out of 70 total recommendations being positive. The minimal sell-side support reflects strong confidence in Nvidia's long-term growth prospects, especially given its leadership in AI. The Hold and Sell numbers are marginal, underlining a prevailing positive outlook among analysts.

Sentiment from Recent News

Overall Sentiment: Somewhat-Bearish

• NVDA: Somewhat-Bearish

A recent article from Motley Fool highlights concerns that Nvidia's gaming business could be facing challenges, despite explosive growth in AI-driven data center revenues. While AI revenue surged to $35.6 billion, gaming revenues were comparatively stagnant at $2.5 billion in fiscal Q4 2025. This creates a nuanced narrative where the core gaming market may be in decline, but robust AI demand is significantly boosting Nvidia’s overall financial health.

Market Impact from Sentiment News

The somewhat bearish sentiment surrounding Nvidia’s gaming division creates short-term pressure on the stock price, as reflected by recent minor declines. However, the dominance of AI revenue growth acts as a strong counterbalance, attracting investor interest and providing a bullish foundation for long-term stability and expansion. This mixed sentiment could lead to price volatility as market participants weigh gaming struggles against AI opportunities.

Summary

Recent news highlighting Nvidia's gaming segment challenges has introduced a somewhat bearish sentiment among investors. However, the overwhelming surge in AI-related revenue to $35.6 billion demonstrates a transformative shift in Nvidia's business model and market perception. Technical analysis reveals bullish momentum supported by strong volume and favorable indicators, while analyst recommendations remain largely optimistic with a majority favoring buy or strong buy. Combined, these insights suggest Nvidia is currently in a transition phase, with AI potentially driving its next growth cycle despite gaming headwinds. Investors should monitor how these mixed factors evolve to gauge future stock performance carefully.

This article is for informational purposes only and is not investment advice.

References

• Market Insight : Ex-Apple Engineers Secure $16M for ElastixAI: A New Era in AI Inference
• Market Insight : Nvidia Faces $15B China Sales Hit for Q2 Despite AI Growth: BofA Insights
• Nvidia's Gaming Business Could Be in Trouble - Motley Fool
• Franklin Rising Dividends SMA Q1 2025 Commentary - Seeking Alpha
• Technical Analysis Basics - Investopedia