NVIDIA's Data Center Business Is Set for Growth in China

One of the hottest growth markets for NVIDIA (NASDAQ: NVDA) right now is data centers. The same graphics processing unit (GPU) technology used to power video games is now being used by cloud service providers to process the mountains of data consumers create, including videos, photos, and messages that ultimately get stored on a cloud server. NVIDIA's data center segment has shown no signs of slowing down, with segment growth of 175% year over year in the most recent quarter.

Archrival Advanced Micro Devices (NASDAQ: AMD) recently decided to get in on the action by announcing a collaboration with Baidu (NASDAQ: BIDU), a major cloud service provider in China and one of NVIDIA's key customers. Contrary to what you might think, this doesn't hurt NVIDIA. In fact, NVIDIA is still very much a preferred chip provider to Baidu, as well as other Chinese tech giants, which should encourage NVIDIA investors, considering the huge opportunity China represents.

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Source: Fool.com