This May Be Nvidia's New Artificial Intelligence (AI) Growth Driver. Could the Stock Continue to Soar?
Nvidia's (NASDAQ: NVDA) revenue has been soaring quarter after quarter thanks to its expertise in powering artificial intelligence (AI) projects. The company's graphics processing units (GPUs) are the fastest around, driving one of the key elements of AI: the deep learning of AI models, which serves as a starting point for their incredible performance down the road.
All of this has helped Nvidia's data center revenue reach record levels, climbing more than 400% to $18.4 billion in the most recent quarter. But this data center business doesn't stop at just a suite of leading AI chips. The company offers customers a full array of products and services through the data center unit to help them advance their AI platforms. And one of these offerings is software and services, a business that just reached a $1 billion annualized revenue run rate in the quarter.
In fact, CEO Jensen Huang said during the earnings call that software should become "a very significant business over time." All of this suggests software might be Nvidia's new AI growth driver, further expanding the company's opportunities to dominate in this hot technology. Could this high-flying stock continue to soar? Let's find out.
Source Fool.com
