Increasing demand for emerging computing technologies like AI, cloud and edge infrastructure are also expected to drive further upsides for the data center segment. With more than 85% of Nvidia's gaming installed base still running on legacy chips, the upcoming upgrade cycle to its newest RTX series chips paired with the general increase in demand for gaming hardware makes favourable trends for the company's growth outlook. Nvidia's gaming and data center segments, which currently account for more than 86% of the company's consolidated revenues, are also well-positioned for further gains. The chipmaker has recently introduced an ' Omniverse' software platform, which builds on its existing strengths in graphics and AI, to enable a three-dimensional environment for use cases beyond recreational application. The advent of the metaverse touted by Facebook ( FB), which has recently changed its name to Meta Platforms to better reflect its shift in focus to virtual reality, also underpins new growth opportunities ahead for Nvidia.

Despite the market's brutal sell-off last Friday in response to uncertainties unleashed by the newest omicron coronavirus strain, Nvidia's stock has remained largely resilient with a steady climb back towards its peak of $335.Īs the leading graphics and AI chipmaker with more than 80% of the world's market share, Nvidia continues to benefit from rising demand for semiconductors across all industries ranging from gaming to automotive.

The stock has more than doubled this year, making it the best performer in the Philadelphia Stock Exchange Semiconductor Index. Nvidia's ( NASDAQ: NVDA) shares have continued to surge towards new heights in the past several weeks after reporting robust growth for its third fiscal quarter, which beat consensus estimates for both earnings and sales, and announcing its development of new products to support the build-out of the metaverse during the company's annual GPU Technology Conference ('GTC'). JasonDoiy/iStock Unreleased via Getty Images

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