NVDA: Reasons to BUY
Datacenter presents a solid growth opportunity for the company. As more and more businesses are shifting toward cloud, the need for datacenters is increasing. To cater to this huge demand, datacenter operators like Amazon, Microsoft and Alphabet are expanding their operations across the world, which is driving demand for the GPUs. This bodes well for NVIDIA’s uptrend as well.
Further, the company intends to focus on new growth boosters for its data center business, such as inference, data science and machine learning techniques to consolidate its presence in this niche market. NVIDIA anticipates datacenter TAM to more than double to $50 billion by 2023.
Considered most preferred by the datacenter operators, NVIDIA’s GPUs are likely to help the company grab a larger market space.
The company’s acquisition of Mellanox is a key catalyst in this regard.
Our estimates suggest that the company’s revenues from the Data Center end-market will grow at a CAGR of 38.5% through fiscal 2023-2025. $NVIDIA Corp(NVDA)$ $Amazon.com(AMZN)$ $Microsoft(MSFT)$ $Alphabet(GOOG)$
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