NVIDIA today reported fiscal 2023 Q4 results for the year ended January 29, with revenue of $6.05 billion down 21% year-over-year, but better than expectations of $6.02 billion, and net income of $1.41 billion down 53% year-over-year.

But after the earnings report,NVIDIA surged 8 percent on better-than-expected results and a recovering gaming industry,With gaming revenue up 16% sequentially, the worst is well and truly over for the graphics market.

Jen-hsun Huang, founder and CEO of NVIDIA, said that the gaming industry has recovered after a pandemic slump, with gamers eagerly embracing ADA-architecture Gpus with AI neurorendering technology.

Ada-built Gpus are the RTX 40 generation of graphics cards, and NVIDIA made a number of gaming breakthroughs in its Q4 quarter,The RTX 40 series notebook graphics card delivers NVIDIA's biggest performance and power efficiency leap ever.

The Notebook RTX 40 Series GPU uses NVIDIA's Ada Lovelace GPU architecture for the greatest generation leap in performance and power efficiency ever, and will feature in more than 170 laptops from all major manufacturers.

The RTX 40 series GPU also brings new DLSS 3 technology,Powered by the new 4th-generation Gpus Cores and GeForce RTX 40 series Gpus, and featuring groundbreaking optical multi-frame generation, this Tensor has delivered a stunning performance boost.

There are currently over 50 games that support DLSS3,Twenty-eight of the games have already been released, including games like Cyberpunk 2077 and Portal RTX.

In addition to DLSS3, the entire DLSS camp is expanding its support,There are over 270 published games and applications that support DLSSTo provide GeForce RTX GPU, desktop and laptop users with enhanced performance and better picture quality, bringing the best experience for DLSS enabled games.

The quarter also saw the release of the RTX 4070 Ti graphics card, which not only supports DLSS3 technology, but also performs faster than its predecessor, the flagship RTX 3090 Ti.

NVIDIA's GeForce Now cloud gaming business has also launched Ultimate Membership levels, offering RTX 4080 level performance, RTX optical chase and DLSS3 experiences.

What's more, NVIDIA recently signed a 10-year deal with Microsoft,Bringing Xbox games to GeForce Now,Microsoft's acquisition of Activision Blizzard will be followed by "Call of Duty" and "Overwatch."