NVIDIA's Data Center Business Is About to Get a Big Boost From Mellanox
Long gone are the days of NVIDIA (NASDAQ: NVDA) the "video game company." In the graphics processing unit (GPU) pioneer's first quarter of fiscal 2021 (the three months ended April 26, 2020), another segment was nearly as large as video games: data centers.
With the long-awaited purchase of Mellanox closing on the first day of Q2, data centers could wind up being the largest reporting segment at NVIDIA from this point forward. Video games will of course continue to play a crucial role -- both for sales and for the technological advancement they help foster for the hardware and software portfolio. But the addition of Mellanox will go down as a pivotal moment for this semiconductor company and its shareholders.
Mellanox isn't reported in the numbers yet, but NVIDIA's data center business has nearly caught up with its gaming bread and butter anyway. Building on the strong momentum it had last year, the segment surged 80% higher in the first quarter and was nearly 40% of revenue.
Source Fool.com
