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NVIDIA (NVDA) Gains on Strong GPU Adoption in Gaming, Data Center
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NVIDIA (NVDA - Free Report) is benefiting from the solid adoption of its graphics processing units (GPUs) in the data-center and gaming end markets.
The accelerated adoption of cloud-based solutions amid the remote-working and online-learning trend is aiding NVIDIA’s data-center business. The lockdown and social-distancing measures adopted by governments across the world to contain the spread of coronavirus has boosted the usage of online and e-commerce services globally.
Apart from this, the pandemic-induced work-and-learn-from-home wave is stoking demand for cloud storage. Therefore, the data-center operators are enhancing their capacities to accommodate this demand spike for cloud services.
Data center presents a solid growth opportunity for the company. As more businesses are shifting to cloud, the need for data centers is shooting up. To cater to this huge demand, the data-center operators like Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) , and Microsoft (MSFT - Free Report) are expanding their operations across the world, which is driving the demand for GPUs.
This bodes well for NVIDIA. The company’s revenues from the segment increased to $6.7 billion in fiscal 2021 from a mere $339 million in fiscal 2016.
NVIDIA is also benefiting from the pandemic-induced stay-at-home instructions, which are spurring demand for its gaming chips as people surf games to stay engaged and entertain themselves indoors.
In the last reported quarter, revenues from the gaming business unit soared 106% year over year and 11%, sequentially, to $2.76 billion on higher sales across the company’s notebook and desktop gaming GPUs and game console SOCs.
Moreover, a better visualization and speed are needed for a thrilling gaming experience, which NVIDIA successfully provides through its portfolio of Pascal architecture-based GPUs. Furthermore, with the emergence of Gaming-as-a-Service (GaaS) and massively multip-layer online games (MMOG) concepts, the demand for GPUs has been surging exponentially.
Notably, the gaming segment’s revenues reached $7.8 billion in fiscal 2021 from $2.8 billion in fiscal 2016, reflecting more than two-fold growth.
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NVIDIA (NVDA) Gains on Strong GPU Adoption in Gaming, Data Center
NVIDIA (NVDA - Free Report) is benefiting from the solid adoption of its graphics processing units (GPUs) in the data-center and gaming end markets.
The accelerated adoption of cloud-based solutions amid the remote-working and online-learning trend is aiding NVIDIA’s data-center business. The lockdown and social-distancing measures adopted by governments across the world to contain the spread of coronavirus has boosted the usage of online and e-commerce services globally.
Apart from this, the pandemic-induced work-and-learn-from-home wave is stoking demand for cloud storage. Therefore, the data-center operators are enhancing their capacities to accommodate this demand spike for cloud services.
Data center presents a solid growth opportunity for the company. As more businesses are shifting to cloud, the need for data centers is shooting up. To cater to this huge demand, the data-center operators like Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) , and Microsoft (MSFT - Free Report) are expanding their operations across the world, which is driving the demand for GPUs.
This bodes well for NVIDIA. The company’s revenues from the segment increased to $6.7 billion in fiscal 2021 from a mere $339 million in fiscal 2016.
NVIDIA is also benefiting from the pandemic-induced stay-at-home instructions, which are spurring demand for its gaming chips as people surf games to stay engaged and entertain themselves indoors.
In the last reported quarter, revenues from the gaming business unit soared 106% year over year and 11%, sequentially, to $2.76 billion on higher sales across the company’s notebook and desktop gaming GPUs and game console SOCs.
Moreover, a better visualization and speed are needed for a thrilling gaming experience, which NVIDIA successfully provides through its portfolio of Pascal architecture-based GPUs. Furthermore, with the emergence of Gaming-as-a-Service (GaaS) and massively multip-layer online games (MMOG) concepts, the demand for GPUs has been surging exponentially.
Notably, the gaming segment’s revenues reached $7.8 billion in fiscal 2021 from $2.8 billion in fiscal 2016, reflecting more than two-fold growth.