Nvidia (NASDAQ: NVDA) has been one of the most important companies over the past decade. Although it's easy to fall into the trap that Nvidia's products are only for gamers, it also has a robust data center business that is powering the future of computing. In fact, 90% of the new systems on the TOP500 list (a collection of the 500 most powerful computers) use Nvidia's products.

However, amid severe headwinds in its consumer-facing business, Nvidia's data center business is also showing slowdown signs. So should investors sell their shares of Nvidia's stock with its whole business beginning to struggle?

Nvidia's headline numbers for its third quarter of fiscal year 2023 (ended Oct. 30) weren't pretty. Revenue was down 17% year over year (YOY) to $5.9 billion, while net income dropped like a rock, down 72% YOY to $680 million. But while many investors may focus on those two numbers, there's something critical going on between them that investors must understand.

Continue reading

Source Fool.com