This $300 Billion Market Could Become Nvidia's Next Big Catalyst
Nvidia (NASDAQ: NVDA) stock's rapid surge this year has been all about artificial intelligence (AI), which is not surprising as the adoption of this technology alone has created massive demand for the company's data center graphics cards.
This explains why the semiconductor company's data center revenue surged an amazing 171% on a year-over-year basis in the second quarter of fiscal 2024 (for the three months ended July 30, 2023) to $10.3 billion. The segment accounted for 76% of the company's top line, which tells us how big a role the data center business is playing in Nvidia's growth.
The AI-fueled growth of Nvidia's data center business means that this sector is under the spotlight, and that's not surprising as it is likely to drive outstanding long-term growth for the company. Investors, however, shouldn't ignore the progress that Nvidia is making in yet another segment as it could turn out to be a huge catalyst for the company in the long run.
Source Fool.com
