Nvidia (NASDAQ: NVDA) stock has gained some ground on the stock market of late, gaining more than 15% in the past three months and outpacing the S&P 500's gains of just 5%, in what may seem like a surprising rally given the terrible situation the company's gaming business is in right now.

But it seems like savvy investors are looking past the weakness in the gaming business as there is one potentially huge catalyst that could help Nvidia tide over the troubles it is witnessing in its second-largest segment -- the company's Arm-based Grace server central processing units (CPUs). Let's see why this new chip platform could be a big deal for Nvidia when it hits the market in 2023.

The server processor market is currently dominated by processors based on the x86 architecture from Advanced Micro Devices and Intel. Market research company Omdia estimates that Arm-based server processors reportedly commanded just 7.1% of the market in the second quarter of 2022, with the rest dominated by x86 processors.

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Source Fool.com