Prediction: This Could Be Nvidia Stock's Next Massive-Growth Opportunity
Nvidia (NASDAQ: NVDA) released fiscal 2025 first-quarter results (for the three months ending April 28, 2024) on May 22, and there was a lot to like about the semiconductor giant's quarterly report as it crushed estimates and delivered better-than-expected guidance thanks to the terrific demand for its artificial intelligence (AI) chips.
The company's revenue shot up a stunning 262% year over year to $26 billion while earnings jumped a massive 461% to $6.12 per share. Both numbers were better than what Wall Street was looking for. The data-center business, which produced 87% of Nvidia's revenue, played a stellar role in this growth. After all, Nvidia's data-center revenue jumped a whopping 427% year over year to a record $22.6 billion last quarter thanks to its dominant position in the AI chip market.
However, there was another business that reported healthy growth of 45% from the year-ago period. Though this business is currently producing a small portion of Nvidia's top line, the immense opportunity in this segment indicates that it could move the needle in a bigger way in the future. Let's take a closer look at it.
Source Fool.com
