Despite Disappointing Numbers, NVIDIA’s Core Business Remains Strong, as Shown by Liftr Insights Data

NVIDIA’s backbone revealed by data signals | Liftr Insights

Liftr Insights, a pioneer in market intelligence driven by unique data, shows strength within NVIDIA’s business.

Recent disappointing activity with NVIDIA has drawn many eyes, but a deeper dive shows that one of their business units has remained strong while others have faltered. That part? Data center revenue.

NVIDIA data center revenue revolves around GPU accelerators sold to public and private cloud centers.

Public cloud providers continue to grow and expand their use of NVIDIA accelerators. Sales and deployment of components such as GPUs on public clouds providers are important indicators because public clouds mirror the needs of the larger semiconductor market, public and private.

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Liftr Insights, a provider of reliable data about public clouds and semiconductors, recently assessed the continued growth of NVIDIA’s data center business.

The data show that NVIDIA continues to dominate the accelerator space despite attempts by AMD, Intel and other providers to gain a foothold. Among those other contenders are the cloud providers themselves, designing and building their own accelerators as they have been doing with ARM-based CPUs.

“We’re proud to have over 40 months of data on companies like AMD, Intel, and NVIDIA that investors can use to track progress,” says Tab Schadt, CEO of Liftr Insights. “Particularly in uncertain times and when data center sales are a core part—the backbone—of these businesses.”

The top six cloud providers, AWS, Azure, Google Cloud, Aliyun, Oracle Cloud, and Tencent Cloud, represent over 75% of the total public cloud market. These data show growth of NVIDIA in size and market share.

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“The data show effects from recent semiconductor backlog issues, but also the continued investment in companies like NVIDIA, despite the challenges,” says Schadt.

NVIDIA’s most recent quarterly statement demonstrates that data center revenue represents 57% of NVIDIA’s quarterly revenue, up from 41% the year prior. This percentage is expected to continue to increase in upcoming earnings reports. Since data center revenue represents the majority of NVIDIA’s business, this segment is critical to monitor as the other markets for NVIDIA products (e.g., gaming, crypto mining) have become fickle.

“Our customers see our objective data as a reliable indicator in uncertain times,” says Schadt. “We look forward to seeing what the next rounds of data this month will signal.”