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Wednesday, April 14, 2021

The Growth in NVDA’s Rapid Data Center is Achieving Permanence

It should be of no surprise to anyone that the data center business for NVDA has been playing quite an important role in its growth. But the investors of this company have been expecting a lot more from the segment- as the tech company soon released their Q3 results for 2021. Although the reports have highlighted the spectacular growth that NVDA has enjoyed, the data center system seems to be quite underwhelmed when compared to the expectations of Wall Street. 

Most of the graphics specialists have pointed out that the data center is going to witness a minor contraction in the revenue that it earns this quarter. And this contraction has been a direct result of the revenue decline in a sequential way from the sales that have been incurred by the products of Mellanox- one of the companies that NVDA acquired previously. 

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But, this worry of the investors seems to be unfounded, for the data center business of NVDA is here to stay. 

No reason to worry about NVDA

There is a reason why investors shouldn’t be this concerned about the data center business of NVDA despite the concerns put forward by Wall Street. The revenue that has been earned in this very segment has been a whopping 162%- something that has been accrued over a sum of $1.9 billion in the Q3. 

Mellanox, too, has played its part and has accounted for almost a third of the revenue generated from the data center segment. The total revenue of the company has been $3.72 billion, of which 13% stands from the growth Mellanox has incurred. And this increase in the revenue has been posted its acquisition by NVDA.

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