NVIDIA plans to focus more on products for AI and HPC and reduce the importance of the GeForce division
One of the most lucrative markets for NVIDIA is its gaming graphics cards. Products in the GeForce line account for a large portion of the company's revenue today. But everything seems to indicate that the company is thinking of reducing the weight of this division in favor of the GPU for Data Centers, in an unprecedented move.
Although GeForce products are very lucrative, most of the revenue does not come from the gaming segment precisely. The weight of the company is carried by the products for Data Centers and HPC, largely thanks to the Tensor Cores. So the company would be thinking of changing the strategy and focusing on GPUs for data centers.
[amazon box="B07M7J8H3K"]NVIDIA may downgrade the importance of GeForce graphics
The company has been showing signs for some time that its data center, AI and HPC products are more relevant. So much so that it first presents architecture for the professional and industrial sector and then gaming. This is reflected in the quarterly data shown a few days ago. Of the $ 30.800 billion in Q1 2020, approximately 14% of revenue comes from the gaming range.
Over 86% of revenue comes from products for professional and industrial systems. And is that although the gaming division has grown 27%, the data center market has risen 80%. The data could not be clearer.
One of the clearest examples of NVIDIA's strategy has been the outlay of $ 500 million to acquire Mellanox. For those who do not know Mellanox, it is a company specialized in solutions for Data Centers.
The future of the industry goes through AI and HPC, which already move astronomical figures. To give us an idea, this market is valued at $ 100.000 billion by 2024. Currently NVIDIA has a privileged position in this segment, although it remains to be seen if Intel's Ponte Veccio will be able to compete with its solutions.
Source: MD
