what happened
NVIDIAsay (NASDAQ: NVDA) According to data provided by S&P Global Market Intelligence, the share price climbed by 121.9% last year. The graphics specialist has released new graphics processing units (GPUs) in its two largest segments – data center and games – which have been in great demand.
In September, NVIDIA made headlines in the chip sector through the $ 40 billion acquisition of ARM Holdings, which is controlled by SoftBank Group. The agreement should still comply with the regulatory review, but it will significantly improve NVIDIA’s ability to deliver leading-edge artificial intelligence (AI) solutions with ARM’s disk designs.
NVIDIA’s Ampere-based A100 GPU. Image source: NVIDIA.
Approximately
Top cloud companies use NVIDIA’s new A100 GPUs, based on the latest Ampere disk architecture. It set a record year for the NVIDIA data center business, with segment revenue rising 80% year-on-year in the fiscal first quarter, 167% in the second and 162% in the third quarter.
In addition to the data center’s strong results, interest in gambling exploded in 2020, delivering record sales for NVIDIA’s RTX GPU business. The segment achieved a quarterly record $ 2.27 billion in the third quarter in the fiscal third quarter.
Now what
A catalyst to keep track of in the short term is the impact that the recent rise in cryptocurrency prices could have on the growth for the gambling industry. The graphics cards of the RTX 30 series have been sold out, partly due to the huge demand from miners in cryptocurrency. This means that the gaming segment is likely to see tremendous results by the time NVIDIA reports its fourth quarter fiscal results.
As for the data center segment, NVIDIA is still in the early start-up phase for its A100 GPU. Technology giants and researchers are seen buying more of these new chips for AI and recommended systems.
Looking at the whole thing, the ARM agreement could significantly increase NVIDIA’s leadership in the semiconductor industry. But regardless of when the deal is approved, NVIDIA’s current leadership in graphics processing puts the company in an excellent position to deliver returns to investors, as organizations increasingly rely on the advanced computing power of GPUs to handle AI workloads.