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20.09.2024 23:00:00

Prediction: This $80 Billion Market Could Be the Next Big Growth Driver for Nvidia Stock

Graphics processing units (GPUs) have been Nvidia's (NASDAQ: NVDA) bread-and-butter business for a long, long time. The company initially made its name producing GPUs meant for deployment in personal computers (PCs) for gaming and content creation, before eventually striking gold with its data center GPUs that are now in red-hot demand thanks to artificial intelligence (AI).As it turns out, data center compute chips now produce the majority of Nvidia's revenue. The company sold $22.6 billion worth of data center GPUs in the second quarter of fiscal 2025 (which ended on July 28). The segment's revenue shot up 162% year over year, accounting for 75% of the company's top line. However, there is another niche within the data center business where Nvidia is now gaining impressive traction.This particular business segment is now bigger than Nvidia's gaming business, and it could turn out to be a key growth driver for the company in the long run. Here's a closer look at this emerging business that could supercharge Nvidia's growth.Continue readingWeiter zum vollständigen Artikel bei MotleyFool

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NVIDIA Corp. 97,09 -4,63% NVIDIA Corp.