NVIDIA's Rapid Data Center Growth Is Here to Stay

The data center business has played a critical role in NVIDIA's (NASDAQ: NVDA) terrific rally so far in 2020, but investors were left wanting more from this segment when the tech giant released its third-quarter results for fiscal 2021 in mid-November.

Though NVIDIA's results showed spectacular growth once again, the data center business underwhelmed as compared to Wall Street's expectations. The graphics specialist pointed out that the data center business will witness a slight contraction in revenue this quarter thanks to a "meaningful sequential revenue decline" from sales of Mellanox's products, a company that NVIDIA had acquired earlier this year.

But investors shouldn't be worried about this blip, as NVIDIA's data center business is in solid shape and seems destined for long-term growth. Let's see why.

Source Fool.com