3 Reasons Investors Can Expect More Growth From NVIDIA's Gaming Business
NVIDIA (NASDAQ: NVDA) is experiencing the strongest upgrade cycle in company history with its new Ampere graphics processing units (GPUs). Gaming revenue grew 41% year over year in fiscal 2021, and there are three reasons this momentum could stick around long-term.
The flexibility of the PC as a gaming platform puts NVIDIA in a great position to see further growth in gaming. For example, more players are engaging with esports titles while communicating with their gamer buddies through Discord, a popular messaging platform that now has 140 million active users. Discord is not easily accessible for gaming console users.
There is also a growing number of players that are live-streaming their gameplay, which puts a lot of stress on a PC's processor. These trends are fueling sales of NVIDIA's high-end gaming GPUs. The company's gaming revenue has increased at an 18% compound annual rate over the last four years, reaching $7.7 billion in annual revenue, or nearly half of NVIDIA's total business.
Source Fool.com
