2 Beaten-Down Nasdaq Stocks That Could Win From a $40 Billion Market
Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) are having a brutal year on the market thanks to weak personal computer (PC) sales that have hurt the demand for graphics cards and processors. Both stocks have lost over 50% of their values so far in 2022, but an emerging opportunity could help them recover from the current slump.
While the demand for traditional gaming hardware and software may remain muted in the near term because of inflation, there's one niche within this market that's growing at a terrific pace -- cloud gaming. The cloud gaming market reportedly generated just $1.7 billion in revenue last year, but it could generate over $40 billion in revenue by 2029, growing at an average of more than 43% per year over the forecast period.
This rapid rise in the adoption of cloud gaming isn't surprising, as it provides a cheaper alternative for gamers to play their favorite titles. In cloud gaming, games are run on remote servers and are delivered to smartphones, tablets, televisions, or PCs with a high-speed internet connection. Users simply need to buy a subscription to a cloud gaming service such as Nvidia's GeForce Now and have a fast internet connection to start playing.
Source Fool.com
