Data Centers Hold the Key to Nvidia’s Future Growth
Long a leader in the gaming processor industry, Nvidia (NASDAQ: NVDA) has been increasingly under pressure from major competitors Intel (NASDAQ: INTC) and AMD (NASDAQ: AMD). Despite the fact that Nvidia still overwhelmingly dominates the discrete GPU sector, this increasing competitive pressure has forced the company to look to other avenues of growth. And in data centers, it might have found one.
Image source: Nvidia.
The processor industry is a tough market with little product differentiation. Chipmakers gain ground by improving their architecture and manufacturing processes, which in turn, improve chip performance. But those improvements require intense research and development efforts, making them quite pricey.
Source Fool.com