Meanwhile, Nvidia's revenue from GPUs, which are aimed at data centers, tripled year-over-year on account of the growth in artificial intelligence (AI) workloads. Hyperscale and cloud customers are buying Nvidia's data center GPUs hand over fist, with revenue from these customers more than doubling over the prior year. Again, the massive growth in this segment isn't surprising, as the company reportedly commands over 80% of the data center GPU market. The segment's revenue increased 71% year-over-year, which means that it grew at a faster pace than the company's gaming business. The data center business, on the other hand, produced nearly 43% of Nvidia's revenue last quarter. As such, Nvidia's hegemony in the GPU market is here to stay, and should accelerate its growth over the next five years. Nvidia is unlikely to loosen its grip over this space thanks to its technology lead over rivals.Įven better, the company is expected to release its next generation of gaming GPUs this year, which could pack more than twice the computing power of the current generation of cards. Allied Market Research estimates that the GPU market could clock 33.6% annual growth for the next five years, and exceed $200 billion in value by 2027. The GPU market is expected to clock impressive growth over the next five years. With 83% of the discrete GPU market under its control, according to Jon Peddie Research, Nvidia is in a solid position to corner most of the incremental sales in this market. It is easy to see why Nvidia's gaming business registered such terrific growth last quarter, and is on track to repeat that performance once again in the current one, as the guidance suggests. At the same time, demand for Nvidia's high-end desktop graphics cards led to record desktop revenue last quarter.
#NVDA FORECAST SERIES#
CFO Colette Kress remarked on the company's latest earnings conference call that its RTX 30 series cards will be powering more than 160 new laptop designs. Nvidia has bombarded the market with an army of laptops and notebooks powered by its graphics cards.