Motley Fool Money What Drives Nvidia’s Growth?
9 snips
Feb 27, 2025 
Asit Sharma, an investment analyst at The Motley Fool, brings insights into NVIDIA's remarkable 78% revenue growth, driven by its data center dominance. He discusses CEO Jensen Huang's bold vision for AI's future and how it reshapes NVIDIA's strategy. The conversation takes a turn towards AppLovin, examining its rapid rise and the shadows of controversy around its advertising practices, prompting a discussion on market reactions and the ethics of mobile advertising.
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NVIDIA's Data Center Focus
- NVIDIA's remarkable growth, with 78% year-over-year sales increase, is primarily fueled by its data center business.
- This signifies NVIDIA's transition from a gaming and autonomous driving company to a data center powerhouse.
Drivers of Data Center Growth
- NVIDIA's data center growth comes from hyperscalers (like Microsoft and Amazon) buying GPUs for AI.
- Enterprise businesses are also increasingly using GPUs internally for AI, contributing to this growth.
Evolving LLM Demands and Costs
- Large language models (LLMs) are doing more complex tasks (inference compute) than before (one-shot).
- Simultaneously, the cost of performing these tasks (inference) has decreased 200x in two years.