www.fool.com/investing/2021/02/07/...nvidia-reports-earnings/
All that data has to live somewhere, and that's where these data centers come in. As they've had to build out their infrastructure, NVIDIA and other companies that make chips like that have been real beneficiaries.
Another area that is really interesting long-term, is the autonomous vehicle applications of what NVIDIA's doing. It's a relatively small revenue driver for the business right now. ...
NVIDIA has entered 2021 with solid catalysts in two of its biggest businesses -- video gaming and data center. These two segments produce 88% of NVIDIA's total revenue.
The video gaming business is showing promising signs in the new year, as demand for NVIDIA's latest graphics cards -- the RTX 30 series -- is through the roof. As reported by IGN, NVIDIA CFO Colette Kress recently pointed out that the demand for its gaming GPUs (graphics processing units) is "off the charts" even after a strong holiday season.
The graphics specialist has now warned that the supply of the RTX 30 series will remain tight through the first quarter of 2021, as the company is struggling to catch up to overwhelming demand from gamers and cryptocurrency miners alike. More importantly, the strong demand for NVIDIA's latest gaming graphics cards isn't going to disappear any time soon.
That's because the latest Ampere cards bring about a huge jump in performance over their predecessors at aggressive price points. This gives NVIDIA's huge installed base of old GPU users a solid reason to upgrade. All of this bodes well for the video gaming business, which recorded 37% year-over-year revenue growth in the third quarter of fiscal 2021, generating $2.27 billion in sales for the chipmaker.
Like gaming, NVIDIA's data center business has also been in fine form in recent quarters. The business has generated $4.8 billion in revenue in the first three quarters of fiscal 2021, a jump of 138% over the prior-year period. In fact, the data center business' growth has outpaced the video gaming business, which has recorded a 31% increase in revenue in the first nine months of the fiscal year and generated $5.3 billion in sales......
While NVIDIA trades at almost 90 times trailing earnings,.....NVIDIA's forward P/E ratio of 48 is also on the higher side.....