Nvidia Soars on Booming Data Center and Gaming Revenue Driven by AI Adoption
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Nvidia's data center business revenue grew rapidly to $47.5B in 2024, mainly from AI chip sales. Expects 233% YoY growth next quarter.
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Nvidia's gaming GPU revenue also recovering, grew 56% YoY last quarter. AI PCs with dedicated chips emerging big opportunity.
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Nvidia unveiled new RTX 40 GPUs with AI capabilities targeted at mainstream. Most of installed base can still upgrade.
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If Nvidia maintains 80% discrete GPU share, 167M AI PC shipments in 2027 per IDC could mean $53B gaming revenue that year.
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At 33X forward P/E, Nvidia stock still has room to run given growth potential in data center and gaming from AI adoption.