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Nvidia sells an ever greater percentage of their sales to the data-center market, and consumers purchase a shrinking portion. They do not want to flatten their
by IncRnd 6y ago
Nvidia sells an ever greater percentage of their sales to the data-center market, and consumers purchase a shrinking portion. They do not want to flatten their currently upward trending data-center sales of high-end cards.
NVIDIA's stock price has doubled since March 2020, and most of these gains can be largely attributed to the outstanding growth of its data center segment. Data center revenue alone increased a whopping 80% year over year, bringing its revenue contribution to 37% of the total. Gaming still contributes 43% of the company's total revenues, but NVIDIA's rapid growth in data center sales fueled a 39% year-over-year increase in its companywide first-quarter revenues.
The world's growing reliance on public and private cloud services requires ever-increasing processing power, so the market available for capture is staggering in its potential. Already, NVIDIA's data center A100 GPU has been mass adopted by major cloud service providers and system builders, including Alibaba (NYSE:BABA) Cloud, Amazon (NASDAQ:AMZN) AWS, Dell Technologies (NYSE:DELL), Google (NASDAQ:GOOGL) Cloud Platform, and Microsoft (NASDAQ: MSFT) Azure.
https://www.fool.com/investing/2020/07/22/data-centers-hold-the-key-to-nvidias-future-growth/ https://www.fool.com/investing/2020/07/22/data-centers-hold-...