The shift from working in the office to working at home is a big positive for companies that make chips for data centers. NVIDIA Corporation is one such business. It makes chips that power commonly used functions like product recommendations, search suggestions, and AI-driven features like speech recognition and image recognition.
NVIDIA has recognized this shift in the industry and recently completed the acquisition of Israeli chipmaker Mellanox in April. Through the $6.9 billion purchase, NVIDIA will further strengthen its data center business.
Besides data centers, gaming has also picked up significantly during the pandemic. As more people stay at home, there has been a 50% rise in gaming hours played on the NVIDIA GeForce platform. The NVIDIA GeForce experience is famous globally. The top three games in the world, Animal Crossing, Minecraft, and Fortnite, all run on NVIDIA platforms.
NVIDIA’s business did drop in the manufacturing segment, with core sectors like auto struggling due to the pandemic. However, according to NVIDIA CEO Jensen Huang, “The manufacturing companies are impacted, but they’re racing to work on robotics technology so they can be less impacted in the future.” NVIDIA provides chips for robotics as well. So, there seems to be a silver lining in the manufacturing segment for the company.
Buoyed by the tailwinds in its favor, NVIDIA has recently forecasted 2Q2020 revenues above analyst estimates. The positive developments have boosted the NVIDIA Corporation stock. The NVIDIA stock price closed at $351.01 on 21st May 2020, up 20.09% for the month.