What happened
shares of NVIDIA (NVDA -0.36%) fell on Friday, falling as much as 2.4%. By the close, the stock was still down 0.4%.
The tailwind from the semiconductor specialist’s most recent Global Technical Conference (GTC) gave way to corresponding reports Microsoft‘s (MSFT -1.27%) The major Windows 11 22H2 update had caused a number of issues for gamers using Nvidia’s graphics processing units (GPUs).
so what
A growing list of gamers reported a laundry list of performance issues after downloading the update, according to an article on website Bleeping Computer. Users with Nvidia GeForce graphics cards experienced stuttering and significant lag while gaming. One user reported a massive drop in central processing unit (CPU) usage in “all my games [making them] basically unplayable.” Others reported that CPU usage, which normally ranged from 50% to 60%, dropped to just 5% after the update.
Reports from a number of users indicated that rolling back the update appeared to resolve the issues, at least anecdotally.
What now
It’s not uncommon for updates to ravage the functionality of various systems until the bugs are fixed with subsequent versions. For its part, Microsoft has not yet acknowledged the problem or provided specific guidance on how to fix the problem.
Meanwhile, Manuel Guzman of Nvidia Quality Assurance said the semiconductor specialist is aware of the issue and is running a Reddit thread asking users to provide feedback and specific details about the issues they are encountering.
For now, Windows users who also have Nvidia gaming GPUs installed would do well to delay installing the latest update until the companies track down the cause of the problem and issue a fix.
For Nvidia investors, this is business as usual in the ongoing pursuit of integration with various systems built by others. It doesn’t affect the investment thesis for Nvidia – not one iota. The company remains the undisputed leader in the discrete desktop GPU market with an 80% share, while also being an integral part of the largest cloud computing and data center operations.
There’s no question that the slowing economy will weigh on Nvidia stock in the near term, but business will pick up once the economy picks up again.
Nothing to see here folks. move on.
Danny Vena has positions at Microsoft and Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool has a disclosure policy.
