Nvidia CEO tries to soothe investor angst over gaming as new graphics cards are set to launch

Published Tue, Sep 20 20227:55 PM EDTUpdated Tue, Sep 20 20228:13 PM EDT

Kevin Stankiewicz @in/kevinstankiewicz @kevin_stank

Fresh off the unveiling of Nvidia 's (NVDA) newest computer graphics card, CEO Jensen Huang on Tuesday tried to assuage investor concerns about the video gaming market, which has lately dogged the Club holding's stock. Huang touted Nvidia's next-generation graphics cards , which use the company's Ada Lovelace architecture with its RTX 40 technology, in an interview with CNBC's Jim Cramer. Still, Nvidia has accumulated too many computer graphics cards, Huang acknowledged, and said the semiconductor firm needed to address the issue. The company has been steadfastly trying to normalize inventory as it prepares for the new launch, necessitating price cuts on older graphic card models. While those steps have led to short-term financial pain, the CEO suggested they were appropriate given the newest gaming chips are set to hit the market imminently . "The world's gaming market continues to be vibrant, and we have absolutely no doubt that when Ada gets into the marketplace there's going to be lots of excited gamers waiting for it," Huang said. A high-end model of the new card, known as the RTX 4090, goes on sale Oct. 12. The company said two more affordable versions that contain less memory and fewer processing cores will be available in November, under the umbrella of the RTX 4080 brand. Nvidia's product launches are generally important events for the company, offering gamers an incentive to upgrade their graphics processing units to get the latest features. In the case of the RTX 40 series, it means increased efficiency and more expansive artificial intelligence-powered graphics compared with prior generations. These latest computer graphics cards are hitting the market during a financially precarious moment for Nvidia's gaming business. In early August, Nvidia preannounced its second-quarter results, with gaming revenue of $2 billion missing Wall Street's expectations by about $1 billion. Later that month, when it reported the quarter, Nvidia issued a softer-than-expected Q3 guidance, citing weakness in its gaming division due to invento