Following the financial analysis of the last few months, NVIDIA GeForce is being scaled back to GPUs for data centers.
While many believe that the majority of NVIDIA’s revenue comes from the gaming world, this is not the case. The company has analyzed its financial situation and will prioritize data center GPUs in its catalog because they are a more profitable product. Here’s what they have to say.
NVIDIA GeForce is not as profitable as Tesla
At this point we are not misled: NVIDIA is known for its track record of being the best PC graphics component since the late 1990s. However, it is possible that this company is more focused on data centers than in the gaming industry.
NVIDIA is doing great, increasing its quarterly revenues by 133%. From the $30.80 billion they made in the first quarter, $13.4 billion came from the gaming industry.
This represents 80% growth in revenue from data centers, which became the company’s main business. In other words, its gaming products increased by 27%, but its data center products grew by 80%.
As a result, NVIDIA will acquire Mellanox Technologies for $7 billion. This is a company dedicated to the world of data centers, which can give NVIDIA a privileged position.
With all of this, we can say that NVIDIA’s largest revenue stream is the data center, with the NVIDIA GeForce series in the background. The future belongs to AI and HPC, and we look at a market that could be worth around $100 billion by 2024. Keeping the company unrivaled in these areas is the key.