Not the GPUs. This Overlooked Piece of Nvidia's Business Could Matter Most for the Stock's Next Leg Up.
Nvidia sees this area as a $200 billion opportunity.
Overview
Nvidia (NASDAQ: NVDA) has built an artificial intelligence (AI) empire thanks to its strength in one particular area: the graphics processing unit (GPU). These powerful chips have been the crucial tool that's fueled the development and use of AI so far. Researchers and companies use the GPU for key tasks such as the training of AI models and the inferencing process, as these models are actually put to work.
All of this has resulted in soaring earnings for Nvidia every quarter over the past few years. And investors piled into the stock as it climbed 400% over three years -- and demand for GPUs continued to soar.
Details
This year, Nvidia stock has advanced, but at a more moderate pace. It's heading for a 20% annual gain. Moving forward, the GPU may not be the biggest catalyst for stock performance. Instead, the following overlooked piece of Nvidia's business could matter most for the stock's next wave of growth. Let's check it out.
Source
Originally published at www.fool.com.