NVIDIA's Worst-Performing Business Could Take Off Like Its Data Center Segment Did
Though NVIDIA (NASDAQ: NVDA) has been flying high and delivering rapid revenue and earnings growth over the past few quarters, the graphics processor specialist's automotive business has thus far been failing to click.
For its fiscal 2021, which ended Jan. 31, the chipmaker booked automotive revenue of just $536 million, which amounted to just over 3% of its top line. What investors might find more alarming is that NVIDIA's automotive revenue dropped by 23% in fiscal 2021. It was the company's worst-performing business segment. Contrast those results with its highly successful data center business, which more than doubled its revenue during the year and accounted for 40% of the company's top line.
But don't be surprised to see NVIDIA's automotive business pick up the pace in the coming quarters. It could even emulate the astounding growth of the data center segment, which accounted for only 12% of NVIDIA's total revenue four years ago but has grown by leaps and bounds thanks to a huge end-market opportunity.
Source Fool.com
