Nvidia Growth Could Accelerate as AI Chips and Gaming GPUs Expand Reach
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Nvidia's data center business, which sells AI chips, is growing very quickly and made up 79% of revenue last year. It could continue driving growth.
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Nvidia's gaming chip business is recovering and grew revenue 15% last year. It could benefit from the adoption of PCs enabled with AI capabilities.
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By 2027, over 150 million PCs shipped annually could be AI-enabled PCs that need advanced chips like Nvidia's new RTX 40 GPUs.
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If Nvidia maintained its 80% discrete GPU market share in 2027's projected 167 million AI PC shipments, it could make over $53 billion just from gaming chips.
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That's over 5x Nvidia's gaming revenue last year. With data center growth too, Nvidia could sustain its stock's gains long-term.